Varo is now offering an optional ‘deposit sweep’ program, in which your deposited funds can be swept into a network of FDIC-insured banks. This program doesn’t impact your account terms or access to your cash deposited in either your Bank Account or Savings Account and you may benefit from additional FDIC insurance if you have balances over $250,000. The full balance of your account(s) will always be available to you.
Varo and many other banks participate in this program because it helps us keep our costs low, and provide you with the great rates and services you expect from us.
If you opened your account before January 12, 2021, you’ll receive an in-app message asking you to opt in or out of the program. You won’t be opted in unless you choose to via the in-app message. If you’ve previously opted in but change your mind, you can opt out at any time.
If you opened your account on or after January 12, 2021, you’ll automatically be opted in to the program through your acceptance of the terms and conditions of your account agreements, but can also opt out at any time. Your full terms and conditions can be found here for the Bank Account and here for the Savings Account.
How does this increase my FDIC insurance?
Varo can offer more than $250,000 of FDIC insurance for customers who opt in to the Deposit Sweep Program by moving cash to other FDIC insured banks that participate in the program. Each Program Bank to which your funds are swept may add additional capacity for insurance.
Funds in the sweep program are eligible for FDIC insurance coverage up to a total of $1,225,000 through partner banks, subject to FDIC insurance rules and taking into consideration any other accounts you may already have with those other program banks.
For more information on FDIC Deposit Insurance provided by Varo Bank, refer to the FDIC’s Insurance Estimator at https://edie.fdic.gov/
Can I opt out of the program?
If you don't want to participate in the program, call Customer Service at 1-877-377-8276, or email firstname.lastname@example.org with the subject line “Deposit Sweep Opt Out.” Our call center is open Monday - Friday, 8 AM to 9 PM Eastern Time and Saturday - Sunday, 11 AM to 7 PM Eastern Time (excluding federal holidays).
Which other banks are in the Deposit Sweep Program?
For a list of banks participating in Varo’s deposit sweep program, click here. Note that the list of banks may change on occasion, so check back periodically.