Valley Direct vs. Varo Money
High-Yield Savings Account Comparison
By Aviel Fahl|Last Updated: October 16, 2025
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Summary of Valley Direct vs. Varo Bank
Key Metrics at a Glance
| Feature | Valley Direct | Varo Bank |
|---|---|---|
| Top Savings APY | 4.10% High-Yield Savings Account | 5.00% High-Yield Savings Account |
| Minimum to Open | $1000 | $0 |
| Minimum Balance for Top APY | $0.01 | $0.01 |
| Note | Promo. Eligibility restricted to new customers. | Earn 5.00% APY on up to $5,000 and 2.50% APY on the rest. Direct deposit required. |
Valley Direct
Strengths
- Valley Direct offers a competitive APY of 4.10%, though it decreased from 4.30% recently.
- Valley Direct has a strong BBB rating of A+.
- No maintenance fees for the High-Yield Savings Account.
Potential Drawbacks
- Valley Direct requires a minimum deposit of $1,000 to open the High-Yield Savings Account.
- Valley Direct is not BBB Accredited.
Varo Bank
Strengths
- Varo Bank offers a higher APY of 5.00% on deposits up to $5,000.
- Varo Bank is BBB Accredited with a rating of A-.
- No minimum deposit requirement to open the High-Yield Savings Account.
Potential Drawbacks
- Varo Bank requires a minimum direct deposit of $1,000 per month to earn the advertised APY.
- Varo Bank has no physical branches.
→ As of October 16, 2025 Valley Direct offers an APY of 4.10% for its High-Yield Savings Account, with a minimum balance of $0.01, compared to Varo Bank's 5.00% APY for its High-Yield Savings Account, with a minimum balance of $0.01.
→ Valley Direct yields $35 more than Varo Bank on a $10,000 balance after one year. Valley Direct pays $410, while Varo Bank pays $375 (with an effective APY of 3.75%) - an APY advantage for Valley Direct.
Calculate Savings Growth for Valley Direct vs Varo Bank
Valley Direct
Total savings breakdown:
- Interest earned: $2,499.4 (12.19%)
- Total contributions: $13,000 (63.42%)
- Initial deposit: $5,000 (24.39%)
Your total balance
$20,499.40
Total balance: $20,499.4
Earnings: $2,499.4
Bank OverviewVaro Bank
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, Valley Direct's total earnings would be $288 higher than Varo Bank's total earnings.
The Banksparency Savings Calculator provides estimated savings growth based on user input and our latest data.
Compare Valley Direct's vs Varo Bank's Savings Accounts
| Valley Direct | Varo Bank | ||
|---|---|---|---|
| Product | High-Yield Savings Account | vs | High-Yield Savings Account |
| APY | 4.10% (as of 10/16/2025) | 2.50% - 5.00% (as of 10/16/2025) | |
| Bundled Account | No | No | |
| FDIC-insured | Yes | Yes | |
| Online Only | Yes | Yes | |
| Compound Frequency | Daily | Daily | |
| Minimum Deposit | $1000 | $0 | |
| Minimum Balance for APY | $0.01 | $0.01 | |
| Maintenance Fee | $0 | $0 | |
| Direct Deposit Required | No | Yes. Min. $1,000/month | |
| Eligibility | Only for new customers. Existing Valley Bank or Valley Direct customers may open a savings account with a somewhat lower rate. | United States | |
| Note | Promo. Eligibility restricted to new customers. | Earn 5.00% APY on up to $5,000 and 2.50% APY on the rest. Direct deposit required. | |
| 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 10 Months)
| Valley Direct | Varo Bank | ||
|---|---|---|---|
| Product | High-Yield Savings Account | vs | High-Yield Savings Account |
| Latest APY | 4.10 % | 5.00 % | |
| Trend | Sideways | Sideways | |
| Slope (bps/mo) | 4.4 | 0.0 | |
| Rate Changes / Mo | 0.79 | 0.00 | |
| Days Since Last Change | 20 | 301 | |
| High (-10 m) | 4.55 % | 5.00 % | |
| Low (-10 m) | 3.75 % | 5.00 % | |
| Draw-down from High | -9.9 % | 0.0 % | |
| Volatility (CV) | 0.054 | 0.000 |
APY Insights Glossary
- Latest APY
- Most recent advertised annual-percentage yield.
- Trend
- Direction over the last 10 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 (-10 m)
- Highest APY in the last 303 days.
- Low (-10 m)
- Lowest APY in the last 303 days.
- Draw-down from High
- How far today sits below the 10-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.