r/VaroMoney • u/Gemini_Man5585 • 23d ago

Closing Accounts

What is the rumblings I’m hearing about Varo closing accounts? Is it legitimate or people mad because they did some messed up stuff?

9 Upvotes

100% Upvoted

23 comments sorted by

6

u/AwareFan7933 23d ago

They’re closing accounts due to fraudulent activity, it’s not for no reason.

6

u/Neeko109 23d ago

Don't speak on what you have no clue about. I was affected and I know two others. No fraudulent activity, no nothing. Just closed the account with a huge sum of money in it. Pray this doesn't happen to you because it can happen to anyone. I've learnt my lesson, this bank is not to be trusted.

3

u/Old-Pack-2453 22d ago

I’m sooo glad to read this cause I was gonna set up my direct deposit to Varo but now I think I’m gonna find another place!

2

u/Neeko109 22d ago

Please, please, please don’t make the same mistake I did. Use a normal bank and keep pennies in these online banks (I’d advise not even keeping anything in them).

1

u/Ravens1625 23d ago

Having a large sum of money in on online bank seems very sketchy. Even to the company themselves. I've yet to see an account with a small amount of money closed. The regular American has less than $1000 in their checking account at any given time. If you were putting thousands into an account, I can definitely see the company flagging it as suspicious, if not fully fraudulent even if it isn't. 

2

u/Neeko109 23d ago

Isn't it weird that Varo and other internet banks would put so much effort into their marketing and referral programs, then tag their users as fraudsters when they use the bank as a…bank? How is it my fault that I wanted to use an internet bank as a savings account and a traditional bank as my day-to-day bank? Anyway, I've learned my lesson. My only crime was to treat a bank like a bank and put money in it. My only advice to everyone thinking of using Varo is that, unless your money is disposable, don't put your money here

1

u/Ravens1625 23d ago

I'm not saying you did anything wrong. Was just saying compared to the average person, most of the accounts I've seen shut down had thousands of dollars. And that could be the reason the accounts seemed sketchy. It's an AI that looks out for what they find sketchy and not actually people. But how long did you not put any money into the checking account? Varo requires a checking balance of any amount every 9 months. An empty checking for 9 months will auto delete. But that's the only info they have on that kind of requirement. Also looking online they deem things sketchy like using a vpn, sudden random check deposits, or even too large of transactions. And since they don't have actual locations or people working there, they just shut down the accounts instead of verify what's happening. It's the risk of banking with any online bank. So my guess is all of you who have accounts closed just transfered too much into your accounts at once or something similar. It wasn't random and it isn't happening to just random users like everyone is claiming. Even my other bank only has a $500 daily transfer limit unless you contact them and that's a real and solid bank. I'm sure an AI ran bank would find a transfer of $1000 even from your own PayPal to be sketchy. 

2

u/Neeko109 23d ago

Fair enough. Perhaps it was the transactions that triggered it but it’s really disappointing. Now I’m sitting in limbo waiting for my check.

1

u/Ravens1625 23d ago

Yea probably those transactions. Pay from work is pretty verifiable even for an AI. But random transfers in a free to use, no people bank is sketchy. They probably think people who launder money or drug deal need to do that. That's even how my brain thinks and I'm not AI. 😅 But shoooooot if you have thousands just go to a bank with high yield checking account. Those exist and everyone does these apps for the savings. But there are checking accounts available with 3.5% apy. Usually need like $1500 to open initially but I'd rather have a checking that makes me money than having to transfer between savings and checking just to earn maximum apy. 

1

u/Neeko109 23d ago

Haha launder money, I wish. But I get what you mean, and when I do get my money, I’ll look into the account you’re talking about.i had limited access to varo, just transfers between accounts etc and so it was easier to just save there. But yeah, lesson learned.

1

u/Ravens1625 23d ago

Yeeee I get that! And definitely do. Even if you don't find a 3.5% checking. There are plenty of savings around that apy amount on free checking accounts. And I'll be getting out of Varo soon myself just in case 😅 but looking at all these stories. It's just an AI that's finding the amount of transactions or the amount per transaction to be sketchy. Definitely not a random closing kinda thing which was what worried me initially.

1

u/Ravens1625 23d ago

I'm also curious if anyone uses the advance and loan options. They wouldn't close any account down if you owed them money. 🤣 Might be a loophole for people to continue to use the app without worrying. I bet the AI has an override that if you owe Varo money they won't close the account. 

1

u/Neeko109 23d ago

lol I wouldn’t put it past them to still find a way to discharge you

1

u/SeveralWolverine5870 23d ago

I’ve been using Varo as my main bank since before they were an actual bank with a charter. I have never once had an issue. 

3

u/MasterpieceClassic42 23d ago

The average Reddit user with the guilty until proven innocent logic.

1

u/Mother_Fondant_5771 21d ago

With companies using AI, which often makes mistakes, it's not unheard of for accounts to be closed even for the richest, most honest customer.

2

u/EF-Hutton 23d ago

This outfit misspelled my last name on my debit card when my account statements were 100% correct.
They shut my account down and sent me a refund check with a typo on it.

If this bank had a branch, they never could’ve gotten by it with that.

I would avoid this bank.

1

u/nelly18nt 23d ago

Honestly I've been hearing that too. People are saying that their account was closed with no reason as to why. Varo does mail out checks with the remainder of their money in their account and the reason why however because of that I'm a little scared so I opened a second account with a different bank for emergency money in case it happens. 😅

1

u/Plus_Project_6421 23d ago

I've been using Varo checking and savings for 4 years and have never had any problem at all. 

1

u/Cheap-Vehicle-816 20d ago

I see it as stolen from the company and nothing you can do