Varo Money vs. Wealthfront

High-Yield Savings Account Comparison

By Aviel Fahl|Last Updated: November 12, 2025

We earn a commission if you open an account through some links on this page.

Summary of Varo Bank vs. Wealthfront

Key Metrics at a Glance

FeatureVaro BankWealthfront
Top Savings APY

5.00%

High-Yield Savings Account

4.15%

Cash Account

Minimum to Open$0$0
Minimum Balance for Top APY$0.01$0
NoteEarn 5.00% APY on up to $5,000 and 2.50% APY on the rest. Direct deposit required.Wealthfront is not a bank but a financial services company. It is FDIC-insured through its many partner banks. New clients get an APY of 4.15% for 3 months, after which the 3.50% APY applies. See terms at Wealthfront.

Varo Bank

Strengths

  • Varo Bank offers a high APY of 5.00% on savings up to $5,000.
  • Varo Bank has a strong BBB rating of A and is accredited.
  • Varo Bank has a higher App Store rating of 4.9 compared to Wealthfront's 4.8.

Potential Drawbacks

  • Varo Bank requires a direct deposit of at least $1,000/month to earn the highest APY.
  • Varo Bank's lower APY is 2.50%, which is lower than Wealthfront's.

Wealthfront

Strengths

  • Wealthfront offers a competitive APY of 4.15% for the first three months.
  • Wealthfront has a higher Google Play rating of 4.9 compared to Varo Bank's 4.6.
  • Wealthfront does not require direct deposit to earn interest.

Potential Drawbacks

  • Wealthfront has a poor BBB rating of F and is not accredited.
  • Wealthfront's APY drops to 3.50% after the initial three months.
Summary: Varo Bank provides a higher APY of 5.00% but requires a direct deposit, while Wealthfront offers 4.15% for three months without a direct deposit requirement. However, Wealthfront has a lower BBB rating (F) and its APY decreases to 3.50% afterward. Varo Bank also has better app ratings, making it a more reliable choice despite the direct deposit condition.

→ As of November 12, 2025 Varo Bank offers an APY of 5.00% for its High-Yield Savings Account, with a minimum balance of $0.01, compared to Wealthfront's 4.15% APY for its Cash Account, with a minimum balance of $0.

Wealthfront yields $40 more than Varo Bank on a $10,000 balance after one year. Varo Bank pays $375 (with an effective APY of 3.75%), while Wealthfront pays $415 - an APY advantage for Wealthfront.

Calculate Savings Growth for Varo Bank vs Wealthfront

All calculations are based on APY.

Varo Bank - High-Yield Savings Account

Top APY: 5.00%

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

Effective APY: 3.65% (based on your deposit and contributions)

Total balance: $20,211.4

Earnings: $2,211.4

Bank Overview

Wealthfront - Cash Account

Top APY: 4.15%

Total savings breakdown:

  • Interest earned: $2,531.8 (12.33%)
  • Total contributions: $13,000 (63.32%)
  • Initial deposit: $5,000 (24.35%)

Your total balance

$20,531.80

Effective APY: 4.15% (based on your deposit and contributions)

Total balance: $20,531.8

Earnings: $2,531.8

Bank Overview

With a $5,000 initial deposit and $13,000 in total contributions over 5 years, Varo Bank's total earnings would be $320.4 lower than Wealthfront's total earnings.

The Banksparency Savings Calculator provides estimated savings growth based on user input and our latest data.

Compare Varo Bank's vs Wealthfront's Savings Accounts

Varo BankWealthfront
ProductHigh-Yield Savings AccountvsCash Account
APY
2.50% - 5.00% (as of 11/12/2025)3.50% - 4.15% (as of 11/12/2025)
Bundled Account
NoNo
FDIC-insured
YesYes
Online OnlyYesYes
Compound Frequency
DailyDaily
Minimum Deposit$0$0
Minimum Balance for APY$0.01$0
Maintenance Fee$0$0
Direct Deposit Required
Yes. Min. $1,000/monthNo
NoteEarn 5.00% APY on up to $5,000 and 2.50% APY on the rest. Direct deposit required.Wealthfront is not a bank but a financial services company. It is FDIC-insured through its many partner banks. New clients get an APY of 4.15% for 3 months, after which the 3.50% APY applies. See terms at Wealthfront.
App Store Rating4.9/54.8/5
Google Play Rating4.6/54.9/5
BBB RatingAF

No historical data available.

More Comparisons

Compare Varo Bank's APY of 5.00% with other banks
Compare Wealthfront's APY of 4.15% with other banks