How to Close Your Varo Bank Account in 2026

Varo Bank has no monthly fees, but if you're moving to a different bank, closing your Varo account takes a few careful steps. Skip one and you risk bounced payments or lost direct deposits. Here's the complete checklist.

Before You Close: The Checklist

Do these before you close your account — not after:

• ✅ Open your new bank account and make sure it's active
• ✅ Transfer your balance to your new bank via ACH transfer or external transfer
• ✅ Redirect direct deposits — update your payroll to your new bank's routing/account numbers. Wait for at least one deposit to confirm it's working
• ✅ Update autopay services — any bills, subscriptions, or automatic payments pulling from Varo need new payment info
• ✅ Wait for pending transactions — check for any pending charges, refunds, or deposits that haven't cleared yet
• ✅ Download your statements — you'll lose access to transaction history after closing. Download or screenshot at least 12 months of statements for tax purposes
• ✅ Cancel Varo Advance — if you have an outstanding cash advance, repay it before closing

How to Close Your Varo Account (2 Methods)

Method 1: Through the Varo App

1. Open the Varo app
2. Go to Settings
3. Select Close Account
4. Follow the prompts to confirm
5. If your balance is $0, the account closes immediately

Method 2: By Phone

Call 1-877-377-8276 and request account closure. Have your account details ready. Phone support can also help resolve issues like pending transactions that prevent closure.

Common Issues When Closing Varo

• "Can't close — balance isn't zero" — Transfer everything out first. Even a $0.01 balance can block closure. If you can't transfer a tiny amount, call support
• "Pending transactions" — Wait for all pending charges and deposits to clear. This can take 3-5 business days
• "Outstanding Varo Advance" — You must repay any cash advances before closing. The repayment happens automatically from your next direct deposit, or you can repay manually
• "Direct deposit arrived after closing" — If a deposit hits a closed account, it bounces back to the sender. Make sure your employer has updated your direct deposit info

Why People Leave Varo

Varo is fee-free, which is great. But common reasons people switch:

• No physical branches — can't deposit cash easily (limited to Green Dot locations)
• Customer service wait times — being app-only means no walking into a branch
• Want better savings rates — Varo's savings APY has decreased over time
• Moving to a bank with broader features — investment accounts, joint accounts, business accounts

Better Alternatives to Varo

• SoFi Checking: No fees, up to 4.00% APY on savings with direct deposit, FDIC insured
• Ally Bank: No monthly fees, strong savings rates, great app, FDIC insured
• Chime: Fee-free checking, early direct deposit, SpotMe overdraft coverage
• Discover Checking: No fees, 1% cashback on debit purchases, FDIC insured
• Local credit union: Often better rates than any online bank, plus physical branches

A Note About Varo as an FDIC Bank

Varo is one of the few neobanks that's actually an FDIC-insured bank — not a fintech riding on a partner bank's charter. This means your deposits were always directly insured. When switching, make sure your new bank is also FDIC or NCUA insured (credit unions).