Digital banking group Varo Bank announced on Thursday its instant cash advance service, Varo Advance,” is now live and free to use through the month of January 2021. According to Varo, the service provides an advance of up to $20 for free, with a maximum charge of $5 for a $100 advance. Customers are offered a number of days they can choose from to repay within a 30-day window.
“This holiday season will be unlike any other in memory with the entrenched COVID pandemic and its economic impacts. Varo Advance can act as a short-term bridge to help customers proactively manage their finances between paychecks and keep them going through the holidays. Qualifying Varo Bank customers can instantly access up to $100 in cash right in their Varo Bank app through Varo Advance. From now through January 31, 2021, the service is available completely free of charge.”
While sharing more details about the service, Colin Walsh, Founder and CEO of Varo Bank, stated:
“We created Varo Advance based on direct feedback from our customers, who asked for greater flexibility in accessing cash on demand to help stretch a paycheck or meet an immediate need. Due to the challenges of 2020 and the current economic circumstances for many hard working Americans, we made the decision to provide Varo Advance free of charge through the end of January 2021. It’s a way of saying thank you and sharing some holiday cheer with our most engaged customers.”
Varo also noted that starting in February 2021, Varo Advance will shift to a fixed, transparent cost structure – no tips, no hidden fees, and no instant access fees.
“Varo Advance can be used immediately, anywhere, at any time, for any unexpected expense and offers customers a seamless, proactive way to access extra cash to help stretch their money, without needing to overdraft their account.”