FinTech News
Varo Bank Now Offers No-Fee Cash Deposits at CVS Locations
FinTech-turned-bank Varo has announced a new money-saving perk for customers.
About the no-fee deposit feature:
This week, Varo Bank revealed a collaboration with both Green Dot and CVS that will benefit accountholders. Now, customers can deposit cash into their Varo account at CVS with no fee. In total, there are more than 7,500 participating CVS locations in the United States, although some exceptions include those found in Target stores, within hospitals, and on military bases.
Previously, cash deposits at CVS came with a fee of $4.95 per deposit. In turn, Varo says that customers who regularly use cash deposits can save $120 per year (which would amount to using the service once every two weeks) thanks to this update. Note that a $4.95 transaction fee continues to apply to cash deposits made at other Green Dot-enabled locations.
Varo customers can deposit between $20 and $500 in per Green Dot transaction. However, there is a $5,000 per month limit, as well as a 20 transaction per month cap. Meanwhile, Varo checking account users can withdraw cash for free at more than 40,000 ATMs that are part of the Allpoint network.
What they’re saying:
Announcing this update, Varo Bank CEO Colin Walsh stated, “As an all-digital bank, Varo is creating low-cost financial solutions designed specifically for the needs of everyday Americans. This Green Dot collaboration at participating CVS Pharmacy locations eliminates cash deposit fees, making basic banking more convenient and affordable.”
Meanwhile, Green Dot’s SVP of Money Movement Crystal Bryant-Minter said of the partnership, “We are thrilled to work with Varo and CVS Pharmacy to make banking accessible to millions of American consumers. With more than 20 years’ experience delivering seamless banking and payment solutions to consumers and businesses, Arc by Green Dot powers some of the world’s most trusted brands and thousands of other businesses at all stages of growth with seamless, secure and useful financial tools and experiences.”
My thoughts:
This is a pretty significant update not only for Varo but for neobanks in general. For a long time, the inability to deposit cash was a major drawback of digital banking. While this was partially fixed by Green Dot, the nearly $5 per transaction fee heavily ate into the usefulness of the offer. Now that customers can deposit cash for free is a huge advantage for Varo Bank in my book. In fact, in the future, I might even make use of this option since my main bank doesn’t have any locations in my area.
I’m now very interested to see if other neobanks that offer Green Dot cash deposits are able to work out similar deals or what other advancements 2025 will bring in terms of making digital banks even more convenient.
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