Digital-only challenger bank Varo Money announced on Tuesday it is now offering No Fee Overdraft. According to Varo, the No Fee Overdraft feature allows customers to overdraft their bank account balance up to $50 with no fee and no interest when they meet certain eligibility requirements.
“No Fee Overdraft adds to the products and services Varo already provides including bank accounts with no monthly fees, high-yield savings accounts with no minimum balance requirement, automated savings tools, and early direct deposit — all of which are designed to build an individual’s financial health.”
While sharing more details about the feature, Colin Walsh, CEO of Varo Money, stated:
“Financial institutions earned $34.5 billion from overdraft fees alone last year and the vast majority of overdraft fee revenue came from customers who can least afford it. Paying for a tank of gas to get to work could cost you a fee of $35 if you’re running a few dollars short just before payday. We understand that having a safety net to pay bills and stretching a paycheck is important. We built a way for people to do that safely without having to tap credit cards.”
Varo Money went on to add the launch of No Fee Overdraft is another step forward in the company’s mission to be the best banking company in the U.S. for consumers looking to build their financial health.