"Millennial" Banking Applications That Are Changing The Game (Continued)

          Today, I'm going to discuss one other mobile/online banking option out there that is offering an exciting new way to bank. Much like Chime, it offers a mobile app, checking and savings account, and a debit card. They will allow you to send out checks by mail for bill payments as well as send ACH debit payments. They are very similar to Chime Bank with a few exceptions, and the differences are what makes me excited to try them out to see if their service is equal to or better than that of Chime. This new and exciting bank is also backed by the same actual banking institution as Chime  (The Bancorp Bank). Their name is Varo Banking. The overall concept is much like Chime Bank, but they offer some extras that I want to talk about to give you an idea of how much this could benefit your financial life. I'll cover the basics of the account first and then go over their unique product offerings to close it out.
          The checking account is standard and no different than Chime, other than the fact that they use the Allpoint ATM network instead of MoneyPass. Varo claims to have free access to 55,000 ATMs. This is obviously a larger number than the 30,000 Chime is claiming on their website. Now, the ATM itself could still charge a fee depending on which one you access, so that does not mean that you won't see any fees. On the bright side, I've found that local credit unions will allow you to use the ATM with no fee, so that is a good option. The account has no monthly service fees, no minimum balance requirement, and no overdraft or foreign transaction fees. The VISA debit card provided includes an EMV chip for the highest level of security you can find. They offer early direct deposit like Chime as well as instant transfer through Square or Paypal.  They offer mobile check deposit, and you are even able to deposit cash for a small fee with a participating retailer. They are FDIC insured up to $250,000 like a normal bank as well. All of the normal features of a bank combined with the convenient features of a mobile app and the peace of mind that you have when storing your money in a large institution. I don't see anything to be afraid of here. Especially if you're already tech savvy.
           The savings account offers a very competitive 0.50% APY. When you compare this to Chime Bank's 0.01%, it's obvious who has the better savings option. The mobile app also allows you to set goals for saving to keep track of your progress. They offer tips and advice on how to improve your savings and meet those goals as well. This part of the account is not my main focus, but is still an added bonus. I personally use Discover online bank for a savings account because of the higher APY.
           On to the final two features that I am most excited about with this company. They offer lending options built into the app as well! That is correct, if you're looking for a mobile banking app that most closely resembles a real banking institution, this is the one for you. They offer two products that can help meet your short-term needs. The first is a backup line of credit. This is basically like having a credit card. It is an amount of money that they've approved for you to borrow directly into your checking account when needed. You will of course pay an interest rate for this money, but it is typically a little less than you'd pay to borrow a cash advance or use a credit card. Of course, I don't recommend that you borrow money, but the option is there if you need it. The second lending option is a standard personal loan. According to their website, Varo offers 3-5 year loan terms. It does mention that they're only available in certain states, so this feature may not apply to you based on where you live. However, if it's available, it is a good option to have when you need a quick loan.
           Be sure to check out the website by clicking the link here. It will take you directly to their home page where you can check them out for yourself. I personally plan on opening an account this week to get started and see how they pan out in comparison to Chime. I've been happy with Chime so far and don't mind the online/mobile banking experience one bit. When I consider that the majority of my money is transferred via my debit card or electronic drafts, I don't believe it matters that I don't have a local building to walk into for customer service. The phone customer service I've experienced with Chime so far has been good and Varo claims to have the same live customer service. This beats waiting out large firm hold times when calling in about an issue. I'll say it again, these apps and companies are changing the game. Technology is taking us down a road that once seemed improbable. The power could be gradually shifting into the hands of the people if we decide to embrace the change that is coming. Thanks for taking time out of your day to check in and good luck to you in your journey toward financial freedom. Be sure to check back tomorrow for another post on ways to improve your financial position. I'll be going over the investment options that will guide you to your ideal nest egg. Thanks again! Have a great day.