Ufb Direct vs. Varo Money
High-Yield Savings Account Comparison
By Aviel Fahl|Last Updated: November 2, 2025
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Summary of UFB Direct vs. Varo Bank
Key Metrics at a Glance
| Feature | UFB Direct | Varo Bank |
|---|---|---|
| Top Savings APY | 3.71% UFB Checking and Savings Bundle | 5.00% High-Yield Savings Account |
| Minimum to Open | $5000 | $0 |
| Minimum Balance for Top APY | $10,000 | $0.01 |
| Note | The regular savings or money market APY may be boosted up to 3.71% by direct deposits, minimum balance of $10,000 and making 10 approved debit card transactions per statement cycle. See bank for full details. | Earn 5.00% APY on up to $5,000 and 2.50% APY on the rest. Direct deposit required. |
UFB Direct
Strengths
- UFB Direct offers a competitive APY of 3.71%, though conditions apply.
- UFB Direct has an A+ BBB rating, indicating strong trustworthiness.
- UFB Direct has no maintenance fees across its accounts.
Potential Drawbacks
- UFB Direct's APY decreased from 3.96% to 3.71% in the last 30 days.
- UFB Direct requires a minimum balance of $10,000 for its highest APY.
- UFB Direct has no branches, limiting in-person banking options.
Varo Bank
Strengths
- Varo Bank offers a high APY of 5.00% on savings up to $5,000.
- Varo Bank has a higher App Store rating of 4.9 compared to UFB Direct.
- Varo Bank has no minimum balance requirement for its high-yield account.
Potential Drawbacks
- Varo Bank requires a minimum direct deposit of $1,000/month for its APY.
- Varo Bank's APY is lower at 2.50% for amounts over $5,000.
- Varo Bank has an A- BBB rating, which is lower than UFB Direct's.
→ As of November 2, 2025 UFB Direct offers an APY of 3.71% for its UFB Checking and Savings Bundle account, with a minimum balance of $10,000, compared to Varo Bank's 5.00% APY for its High-Yield Savings Account, with a minimum balance of $0.01.
→ Varo Bank yields $4 more than UFB Direct on a $10,000 balance after one year. UFB Direct pays $371, while Varo Bank pays $375 (with an effective APY of 3.75%) - an APY advantage for Varo Bank.
→ In addition, UFB Direct also offers 3.51% APY for the UFB Portfolio Savings account.
Calculate Savings Growth for UFB Direct vs Varo Bank
UFB Direct - UFB Checking and Savings Bundle
⚠️The higher APY only applies once your balance reaches $10,000.
Total savings breakdown:
- Interest earned: $2,218.7 (10.97%)
- Total contributions: $13,000 (64.30%)
- Initial deposit: $5,000 (24.73%)
Your total balance
$20,218.70
Total balance: $20,218.7
Earnings: $2,218.7
Varo Bank - High-Yield Savings Account
ℹ️You earn 5.00% on the first $5,000 and 2.50% on the rest.
Total savings breakdown:
- Interest earned: $2,211.4 (10.94%)
- Total contributions: $13,000 (64.32%)
- Initial deposit: $5,000 (24.74%)
Your total balance
$20,211.40
Total balance: $20,211.4
Earnings: $2,211.4
Bank OverviewWith a $5,000 initial deposit and $13,000 in total contributions over 5 years, UFB Direct's total earnings would be $7.3 higher than Varo Bank's total earnings.
The Banksparency Savings Calculator provides estimated savings growth based on user input and our latest data.
Compare UFB Direct's vs Varo Bank's Savings Accounts
| UFB Direct | Varo Bank | |||
|---|---|---|---|---|
| Product | UFB Portfolio Savings | UFB Checking and Savings Bundle | vs | High-Yield Savings Account |
| APY | 3.51% (as of 11/2/2025) | 3.51% - 3.71% (as of 11/2/2025) | 2.50% - 5.00% (as of 11/2/2025) | |
| Bundled Account | No | No | No | |
| FDIC-insured | Yes | Yes | Yes | |
| Online Only | Yes | Yes | Yes | |
| Compound Frequency | Daily | Daily | Daily | |
| Minimum Deposit | $0 | $5000 | $0 | |
| Minimum Balance for APY | $0 | $10,000 | $0.01 | |
| Maintenance Fee | $0 | $0 | $0 | |
| Direct Deposit Required | No | Yes | Yes. Min. $1,000/month | |
| Note | The regular savings or money market APY may be boosted up to 3.71% by direct deposits, minimum balance of $10,000 and making 10 approved debit card transactions per statement cycle. See bank for full details. | Earn 5.00% APY on up to $5,000 and 2.50% APY on the rest. Direct deposit required. | ||
| Sponsored Link | LEARN MORE at UFB Direct, Member FDIC | LEARN MORE at UFB Direct, Member FDIC | ||
| App Store Rating | 4.8/5 | 4.9/5 | ||
| Google Play Rating | 4.5/5 | 4.6/5 | ||
| BBB Rating | A+ | A- | ||
Comparative Historical APY Insights (Last 9 Months)
| UFB Direct | Varo Bank | |||
|---|---|---|---|---|
| Product | UFB Checking and Savings Bundle | UFB Portfolio Savings | vs | High-Yield Savings Account |
| Latest APY | 3.71 % | 3.51 % | 5.00 % | |
| Trend | Sideways | Sideways | Sideways | |
| Slope (bps/mo) | -2.6 | -2.2 | 0.0 | |
| Rate Changes / Mo | 0.32 | 0.32 | 0.00 | |
| Days Since Last Change | 3 | 3 | 284 | |
| High (-9 m) | 4.21 % | 4.01 % | 5.00 % | |
| Low (-9 m) | 3.71 % | 3.51 % | 5.00 % | |
| Draw-down from High | -11.9 % | -12.5 % | 0.0 % | |
| Volatility (CV) | 0.025 | 0.026 | 0.000 | |
APY Insights Glossary
- Latest APY
- Most recent advertised annual-percentage yield.
- Trend
- Direction over the last 9 months (regression slope).
- Slope (bps/mo)
- Average monthly change; 10 bps = 0.10 pp.
- Rate Changes / Mo
- Typical number of APY moves per month.
- Days Since Last Change
- Recency of the latest APY adjustment.
- High (-9 m)
- Highest APY in the last 285 days.
- Low (-9 m)
- Lowest APY in the last 285 days.
- Draw-down from High
- How far today sits below the 9-month peak.
- Volatility (CV)
- Coefficient of variation = stdev ÷ mean.
Why Track Savings-Account APYs?
- See how quickly a bank reacts to Fed moves or competition.
- Gauge “twitchiness” - frequent moves can annoy savers.
- Spot if you're buying near a peak (draw-down) or riding a rise.
- Slope (bps/mo) shows speed of change.
- Volatility (CV) scales jumps by average level.