Varo Money vs. Wealthfront
High-Yield Savings Account Comparison
By Aviel Fahl|Last Updated: November 12, 2025
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Summary of Varo Bank vs. Wealthfront
Key Metrics at a Glance
| Feature | Varo Bank | Wealthfront |
|---|---|---|
| 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 |
| Note | Earn 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.
→ 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
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 OverviewWealthfront - Cash Account
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
Total balance: $20,531.8
Earnings: $2,531.8
Bank OverviewWith 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 Bank | Wealthfront | ||
|---|---|---|---|
| Product | High-Yield Savings Account | vs | Cash Account |
| APY | 2.50% - 5.00% (as of 11/12/2025) | 3.50% - 4.15% (as of 11/12/2025) | |
| Bundled Account | No | No | |
| FDIC-insured | Yes | Yes | |
| Online Only | Yes | Yes | |
| Compound Frequency | Daily | Daily | |
| Minimum Deposit | $0 | $0 | |
| Minimum Balance for APY | $0.01 | $0 | |
| Maintenance Fee | $0 | $0 | |
| Direct Deposit Required | Yes. Min. $1,000/month | No | |
| Note | Earn 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 Rating | 4.9/5 | 4.8/5 | |
| Google Play Rating | 4.6/5 | 4.9/5 | |
| BBB Rating | A | F |
No historical data available.