I’ll never forget the moment I realized my traditional bank was quietly draining my wallet. It was a Tuesday morning in 2021, and I was grabbing coffee when I checked my account balance. That’s when I saw it: another $12 monthly maintenance fee, plus a $3 ATM charge from the day before, and a $35 overdraft fee from a transaction that cleared out of order. In one month, I’d paid $67 just to access my own money.
That afternoon, I started researching digital banking apps, and everything changed. No more branch visits. No more fee anxiety. No more waiting days for my paycheck to clear. But here’s what nobody tells you: not all digital banks are created equal. After personally testing Chime, Varo, and Current for over two years, I’ve learned exactly which features matter and which banks deliver on their promises.
This digital banking apps comparison breaks down everything you need to know about the three biggest players in mobile banking. Whether you’re trying to escape traditional bank fees, build your credit, or just get paid faster, I’ll show you which digital bank fits your specific financial situation.
Quick Answer: Which Digital Banking App Should You Choose?
Choose Chime if: You want the most established digital bank with the largest ATM network (60,000+ fee-free ATMs), automatic savings features, and a proven track record. Best for people who want reliability and widespread acceptance.
Choose Varo if: You need to build credit or want to earn actual interest on your checking account (up to 5.00% APY). Varo is the only digital bank with a national bank charter, offering FDIC insurance directly. Best for people focused on growing their savings and building credit.
Choose Current if you need faster access to your money (up to 4 days early on paychecks vs. 2 days with competitors), premium features at a low fee, or teen accounts for your kids. Best for families and people who can’t afford to wait for funds.
Now, let’s dive into a detailed comparison of digital banking apps to help you make the right choice.
Understanding Digital Banking Apps: What Makes Them Different
Digital banks operate entirely online without physical branches. This means lower overhead costs, which they pass on to customers through fee-free accounts, better interest rates, and innovative features traditional banks can’t match. When comparing Chime, Varo, and Current, you’re looking at three companies that pioneered this approach but took different paths to success.
Traditional banks make money from fees. Digital banks make money from interchange fees (the small percentage merchants pay when you swipe your card) and interest on deposits they hold. This business model shift means they actually want you to use your account more, not penalize you for it.
The key difference in this digital banking apps comparison is how each platform prioritizes features. Chime focuses on simplicity and automation. Varo emphasizes savings and credit building. Current targets early access and family banking. Understanding these differences helps you choose the right fit.
The Complete Feature Comparison: Chime vs Varo vs Current
Account Types and Basic Features
Chime offers two account types: Checking (also called a Spending Account) and Savings. Both are fee-free with no minimum balance requirements. The checking account comes with a Chime Visa Debit Card, and you can open both accounts simultaneously. Chime doesn’t offer joint accounts, which is a significant limitation for couples.
Varo provides a Varo Bank Account (checking) and a Varo Savings Account. Like Chime, both are free with no minimums. Varo also doesn’t currently offer joint accounts. The major advantage here is that Varo is an actual chartered bank, meaning your deposits are FDIC insured directly by Varo Bank, not a partner bank.
Current gives you a Current Account (checking) with optional Current Savings Pods. They also offer Current Teen accounts, making them the only option in this digital banking apps comparison with dedicated teen banking features. Current Premium membership ($4.99/month) unlocks additional features, which is unique among these three banks.
Early Direct Deposit: Getting Paid Faster
This is where digital banking apps shine compared to traditional banks. When your employer sends your paycheck via direct deposit, traditional banks hold it for 1-2 business days. Digital banks access these funds as soon as the ACH network processes them.
Chime offers direct deposit up to 2 days early. In practice, this usually means getting paid on Wednesday instead of Friday. I’ve been using Chime’s early direct deposit since 2021, and it’s consistently 2 days early, sometimes hitting my account late Tuesday evening.
Varo also provides up to 2 days early direct deposit. The timing is nearly identical to Chime in my testing. You’ll typically see your paycheck on Wednesday morning for a Friday payday.
Current pushes this further with up to 4 days of early access to your paycheck. This is the fastest in our digital banking apps comparison. With Current, your Friday paycheck can arrive as early as Monday afternoon. For people living paycheck to paycheck, those extra two days can prevent overdrafts and late fees on other bills.
The catch with all three is that “early” depends on when your employer submits payroll. If they submit it on Thursday for Friday payment, nobody can get it to you earlier. But most large employers submit 2-4 days in advance, making these features genuinely useful.
Fee Structures: What You’ll Actually Pay
Chime: Zero monthly fees, zero overdraft fees (with SpotMe), zero minimum balance fees, zero foreign transaction fees. Chime charges absolutely nothing for basic banking. The only fees you’ll encounter are out-of-network ATM fees if you use an ATM outside their network, which are charged by the ATM operator, not Chime.
Varo: Identical fee structure to Chime. Zero monthly fees, zero overdraft fees, zero minimums, zero foreign transaction fees. Varo also doesn’t charge for out-of-network ATM withdrawals, though the ATM operator might.
Current: Basic accounts have zero monthly fees. However, Current Premium costs $4.99/month and includes additional features like higher overdraft protection limits and fee-free overdrafts up to $200. Out-of-network ATM fees are $3 per withdrawal for basic accounts; Premium members are waived.
In terms of pure fee comparison, Chime and Varo tie for the most fee-free experience. Current’s Premium tier costs extra but delivers value if you need the extra features. For most people, doing a digital banking apps comparison focused on avoiding fees, all three drastically beat traditional banks.
ATM Access and Cash Deposits
Chime provides access to 60,000+ fee-free ATMs through the MoneyPass and Visa Plus Alliance networks. This is the largest network in our comparison. You can deposit cash at more than 90,000 retail locations, including Walgreens, CVS, 7-Eleven, and Walmart (fees typically $4.95 per deposit at retail partners). I’ve never had trouble finding a free Chime ATM in any major city.
Varo offers 55,000+ fee-free ATMs through the Allpoint network. Slightly smaller than Chime but still widely available. Cash deposits are available at select retailers for a fee, but Varo’s cash deposit network is smaller than Chime’s. This is Varo’s weakest area in this digital banking apps comparison.
Current provides 40,000+ fee-free ATMs. The smallest of the three networks, but still adequate in most areas. Premium members get additional ATM benefits, including reimbursement for out-of-network fees. Current allows cash deposits at over 60,000 retailer,s including CVS and 7-Eleven.
If you regularly use cash, Chime has the clear advantage. If you rarely use ATMs, the network size won’t matter much in your decision.
Overdraft Protection: When You Spend More Than You Have
Traditional bank overdraft fees average $35 per transaction. All three digital banks in this comparison offer significantly better options, though they work differently.
Chime SpotMe lets you overdraft up to $20 initially (can increase to $200 based on account activity and direct deposit history). There are no fees or interest. SpotMe covers debit card purchases and cash withdrawals. It won’t cover ACH transfers or checks. Your next direct deposit automatically repays the negative balance.
I’ve used SpotMe dozens of times over the years. It’s prevented me from declining transactions at gas stations and grocery stores. The limit increases slowly; mine is currently at $100 after two years of consistent direct deposits.
Varo Advance is not technically overdraft protection but rather a cash advance feature. You can borrow up to $250 instantly (starts lower and increases with account history). There’s no interest and no credit check, but there is a flat fee starting at $3 per advance. This isn’t as consumer-friendly as Chime’s completely free option.
Current Overdrive allows basic accounts to overdraft up to $25 with no fees. Premium members get up to $200 fee-free overdraft protection. This is the most generous overdraft limit in our digital banking apps comparison, but it requires the Premium subscription to be fully utilized.
For pure overdraft protection, Chime offers the best balance of fee-free access and reasonable limits. Current Premium wins for higher limits if you need them regularly.
Savings Features and Interest Rates
Chime Automatic Savings includes two features: Save When You Get Paid (automatically transfers 10% of direct deposits to savings) and Round Ups (rounds up purchases to the nearest dollar and moves the difference to savings). The Chime Savings Account earns 2.00% APY with no minimum balance. This is competitive with many online savings accounts.
I enabled both Chime savings features and consistently save $150-200 per month without even thinking about it. The automation eliminates the mental effort of manually transferring money.
Varo Savings is the standout in this digital banking apps comparison for interest earnings. You can earn up to 5.00% APY on savings balances up to $5,000 if you meet certain requirements (qualifying direct deposit of $1,000+ monthly and a positive balance in your Varo Bank Account). If you don’t meet the requirements, you earn 3.00% APY —still better than Chime. Varo also offers automatic savings rules similar to those offered by Chime.
Current Savings Pods let you create up to three separate savings goals with custom names and target amounts. However, Current doesn’t pay competitive interest on savings. The current rate is around 0.25% APY, far below Chime and Varo. The Pods are useful for organization but not for actually growing your money.
For maximizing savings growth, Varo wins decisively. For automated savings without having to think about rates, Chime is a solid option. Current isn’t competitive on savings features.
Credit Building Features
This is where the digital banking apps comparison gets interesting. Traditional checking accounts don’t help your credit score, but these digital banks are changing that.
Chime Credit Builder is a secured credit card (backed by your own deposits, not borrowed money). You transfer money to the Credit Builder account, then spend that money using the Credit Builder Visa Card. Chime reports your payments to all three credit bureaus with no fees or interest. There’s no credit check to get the card.
I’ve seen this genuinely help people build credit from scratch. One friend raised her credit score from 580 to 680 in 8 months by consistently using Credit Builder. The key is that Chime reports it as a revolving credit account, the same as a regular credit card, so it has a real impact on your score.
Varo Believe is a credit card linked to your Varo account. You borrow $20-100 (you choose the amount), and Varo holds that amount in your savings account as security. You pay it back over 24 months with a fixed APR of 8.00%. Varo reports all payments to credit bureaus. This differs from Chime because you’re actually borrowing money and paying it back with interest, creating a more traditional credit history pattern.
Current does not offer any credit-building features. This is a significant gap if credit building matters to you.
For credit building, both Chime and Varo work, but they use different approaches. Chime is simpler with zero fees. Varo costs money (interest) but creates a more traditional installment loan history.
Mobile App Experience and Features
All three banks are mobile-first, and the app experience matters daily.
Chime has a clean, simple interface focused on balancing visibility and transaction history. The app loads quickly and rarely crashes. Key features include instant transaction notifications, spending insights that categorize your expenses, and easy transfers between checking and savings. The app is highly rated (4.8 stars on iOS, 4.7 on Android) with millions of reviews.
Varo offers a more feature-rich app with budgeting tools, savings goal tracking, and financial insights. The interface is slightly more complex than Chime but provides more data about your spending patterns. App ratings are solid (4.7 stars on both iOS and Android). Some users report slower loading times compared to Chime, though I haven’t experienced significant issues.
Current focuses on speed and early access features. The app prominently displays when your next paycheck will arrive and how early. Current also includes built-in teen account management for parents. The app has more features for Premium members, including gas hold reversals and access to the Current Card network. Ratings are good (4.6 stars on iOS, 4.5 on Android).
All three apps are functional and well-designed. Chime wins for simplicity, Varo for financial insights, and Current for family features.
Customer Service and Support
Digital banks can’t offer in-person service, so phone and chat support quality matters.
Chime provides support via in-app chat and email. Phone support is available for urgent issues like lost cards. Response times for chat average 15-30 minutes, based on my experience. The help center has extensive articles that answer most questions without contacting support. The major complaint about Chime is account freezes for suspected fraud, which can be difficult to resolve quickly.
Varo offers in-app chat, email, and phone support. As an actual bank (not just a fintech app), Varo has more regulatory obligations for customer service. Phone support is available Monday-Saturday, 7 am – 7 pm CT. Chat response times are similar to Chime’s, typically 15-30 minutes.
Current provides chat and email support with phone support for Premium members. Basic account holders can’t call customer service directly, which is frustrating if you have an urgent issue. Premium support is available 24/7, which is valuable for the $4.99 monthly fee.
None of these digital banks match the support quality of high-end traditional banks, but they’re adequate for most situations. Varo has a slight edge due to phone availability for all customers.
Security and FDIC Insurance
All three platforms offer FDIC insurance, but the structures differ.
Chime is a financial technology company, not a bank. Your deposits are held by The Bancorp Bank, N.A. or Stride Bank, N.A., both FDIC-insured institutions. You have the standard $250,000 insurance limit. This structure is secure, but it means Chime itself isn’t the actual bank holding your money.
Varo is a chartered national bank (Varo Bank, N.A.), the only one in this digital banking apps comparison. Your deposits are FDIC-insured directly by Varo Bank. This provides the same $250,000 protection but with a more direct relationship. Varo went through extensive regulatory approval to become a real bank, which some consumers find more trustworthy.
Current is a financial technology company partnered with Choice Financial Group and Metropolitan Commercial Bank, both FDIC-insured. Like Chime, your deposits are held by partner banks with standard FDIC coverage.
All three are equally safe for your money. Varo’s bank charter is more a matter of corporate structure than of any actual difference in customer protection.
For security features, all three offer:
- Two-factor authentication
- Biometric login (fingerprint/face recognition)
- Instant card locking if you lose your card
- Zero fraud liability on unauthorized transactions
- Security alerts for suspicious activity
Real-World Use Cases: Who Should Choose Which Digital Bank
For College Students
Best Choice: Chime
College students benefit most from Chime’s simplicity and automation. The automatic savings features help build emergency funds without effort, and Credit Builder provides a way to establish credit before graduation. The large ATM network matters when you’re moving between campus, home, and internships in different cities.
The lack of overdraft fees prevents the spiral that many students experience with traditional banks. SpotMe covers occasional overspending without penalty. I wish Chime had existed when I was in college; I paid hundreds in overdraft fees that could have been avoided.
For Families with Teenagers
Best Choice: Current
Current is the only option in this digital banking apps comparison with dedicated teen accounts. Parents can monitor spending, set parental controls, assign chores with automatic payment, and teach financial responsibility with real accounts. The Current Teen debit card works anywhere Visa is accepted, and teens learn to manage money in a controlled environment.
The Premium family plan ($4.99/month for the whole family) adds value if you have multiple teens or want the enhanced features. Early paychecks help family cash flow, and the savings pods let families save together for shared goals like vacations.
For Credit Building Focus
Best Choice: Varo
If your primary goal is building or rebuilding credit, Varo’s structured approach delivers results. The Varo Believe secured credit card creates a traditional installment loan pattern that credit bureaus recognize and value. The 8.00% APR is reasonable for credit-building products (many secured cards charge much higher rates).
Combining Varo Believe with consistent direct deposits and savings account activity creates a comprehensive positive credit history. I’ve seen family members raise credit scores 100+ points in 6-12 months using Varo consistently.
For Maximum Savings Growth
Best Choice: Varo
Earning 5.00% APY on $5,000 means $250 annually in interest, compared to $100 with Chime’s 2.00% rate. For savers focused on growing emergency funds or short-term savings goals, Varo’s interest rates can’t be beaten in this comparison.
The requirements (regular direct deposits of $1,000+) are reasonable for most working adults. Even without meeting them, the 3.00% APY base rate exceeds Chime and crushes Current.
For Paycheck Timing Issues
Best Choice: Current
If you regularly struggle to pay bills before payday, Current’s 4-day early direct deposit can help prevent late fees and service interruptions. Getting paid Monday instead of Friday means your rent check clears before the grace period ends, your car payment posts on time, and you avoid reconnection fees on utilities.
This feature alone can save $100+ monthly in late fees and penalties. The $4.99 Premium membership pays for itself if you avoid even one late fee per month.
For International Spending
Best Choice: Chime or Varo (Tie)
Both Chime and Varo charge zero foreign transaction fees, saving you 3% on every international purchase compared to most traditional banks and credit cards. Current doesn’t explicitly advertise fee-free international transactions, making Chime and Varo safer choices for travelers.
I used Chime throughout a month in Europe and saved approximately $60 in foreign transaction fees compared to my old bank card. The exchange rates were fair, and transactions were processed immediately.
For Cash Users
Best Choice: Chime
If you regularly deposit or withdraw cash, Chime’s 60,000+ ATM network and 90,000+ cash deposit locations provide the most flexibility. You’ll almost always find a fee-free option nearby. Varo’s smaller network works in cities but can be frustrating in rural areas or small towns.
Current’s network is adequate, but the smallest of the three. The Premium tier helps by reimbursing out-of-network fees, but that still means paying upfront and waiting for reimbursement.
The Hidden Drawbacks: What the Marketing Doesn’t Tell You
Chime’s Challenges
Account freezes are Chime’s biggest problem. The bank uses aggressive fraud detection algorithms that sometimes flag legitimate activity. Multiple users report that their accounts have been frozen for days or weeks while Chime investigates. This is particularly problematic if Chime is your only bank account.
Customer service is email and chat only for most issues, meaning resolution can take days. If you’re locked out with bills due, your options are limited. I’ve personally experienced one freeze (eventually resolved, nothing actually wrong) that took four days to clear.
The lack of joint accounts frustrates couples who want to share finances. You can work around this by both getting accounts and transferring money between them, but it’s clunky compared to a true joint account.
Varo’s Challenges
The 5.00% APY savings rate requires meeting specific conditions that not everyone qualifies for. If you can’t maintain $1,000+ monthly direct deposits, you’ll only earn the 3.00% base rate. The $5,000 savings balance cap at the highest rate means your larger emergency funds earn less.
Cash deposit options are limited compared to Chime and Current. If you regularly receive cash payments, Varo quickly becomes inconvenient.
The Varo Believe credit builder costs money (interest charges), unlike Chime’s free option. For people on tight budgets, paying to build credit might not be feasible.
Current’s Challenges
The Premium membership creates a mental decision: Is $4.99/month worth it? For families and people who use the enhanced features, yes. For basic banking needs, you might resent paying when Chime and Varo offer comparable features for free.
Savings interest rates are terrible. If you’re trying to grow money, Current isn’t competitive. The Pods are useful for organization, but not for actual savings growth.
Customer service for basic members is available only via chat or email. The inability to call support for urgent issues is frustrating, especially when dealing with account issues or suspected fraud.
The ATM network is the smallest of the three, leading to more instances of out-of-network fees or longer searches for free ATMs.
Making the Final Decision: Your Digital Banking Apps Comparison Checklist
Use this checklist to determine which digital bank fits your specific needs:
Choose Chime if you:
- Want the most established, proven digital bank
- Need the largest ATM network for frequent cash access
- Want completely free credit building with Credit Builder
- Prefer simple, automatic savings features
- Don’t need high savings interest rates
- Are you comfortable with app-only customer service
Choose Varo if you:
- Want to maximize savings interest earnings
- Need structured credit building and can handle the interest cost
- Prefer banking with an actual chartered bank vs. a fintech app
- Have consistent direct deposits of $1,000+ monthly
- Rarely use cash deposits
- Want good budgeting and financial insight tools
Choose Current if you:
- Need the fastest early access to paychecks (4 days)
- Have teenagers and want family banking features
- Are willing to pay $4.99/month for premium features
- Need higher overdraft protection limits ($200 vs. $100-$250 with others)
- Value phone support (Premium members only)
- Don’t care about savings account interest rates
How to Switch to a Digital Bank Safely
Don’t close your old bank account immediately. Run your digital bank parallel for 2-3 months to ensure all automatic payments and deposits transfer successfully.
Start by switching your direct deposit to your new digital bank. Most employers let you split deposits between accounts, so you can send 10-20% to your digital bank initially, then increase to 100% once you’re comfortable.
Move automatic bill payments one at a time. Update each biller with your new account information and verify that the first payment processes correctly before moving to the next one.
Keep at least $100 in your old account to cover any automatic payments you may have forgotten. Many people forget about annual subscriptions or quarterly payments that are only charged occasionally.
Monitor both accounts daily for the first month. Set up alerts on your phone for all transactions so nothing surprises you.
After 2-3 months of successful operation, you can close your old bank account. Make sure you’ve captured statements for your records and confirmed there are no pending transactions.
Frequently Asked Questions About Digital Banking Apps
Are digital banks as safe as traditional banks?
Yes, when they’re FDIC insured. Chime, Varo, and Current all provide the standard $250,000 FDIC insurance that protects your deposits if the bank fails. The insurance is identical to traditional banks. The main security difference is the lack of in-person support if you have problems, which some people find concerning.
Can I deposit checks with digital banking apps?
Yes, all three offer mobile check deposit. You take photos of the front and back of the check through the app, and it deposits into your account. Funds typically become available within 1-2 business days. Mobile deposit limits vary by account history, typically starting around $500-1,000 per check and $2,500-5,000 monthly.
What happens if I need to deposit large amounts of cash?
Digital banks aren’t ideal for large cash deposits. Retail deposit networks (Walgreens, CVS, etc.) charge fees per deposit and set maximum limits per transaction. If you regularly receive large cash amounts, consider opening a free local bank account for cash deposits, then transferring the funds to your digital bank electronically.
Can I get a cashier’s check or money order?
This is a legitimate limitation of digital banks. None of the three in this comparison offers cashier’s checks, money orders, or certified checks. If you need these occasionally (for down payments, rent deposits, etc.), you’ll need to use a traditional bank, credit union, or purchase money orders from retailers like Walmart or the post office.
Do digital banking apps report to ChexSystems?
Yes, they do. If you’ve had banking problems in the past (unpaid overdrafts, bounced checks, fraud) that appear in ChexSystems, you might be denied for any of these accounts. However, some digital banks are more lenient than traditional banks. It varies by individual circumstances.
Can I use my digital bank account for Zelle, Venmo, or PayPal?
Partially. Chime, Varo, and Current all work with PayPal and Venmo for adding funds and transferring money. However, Zelle is complicated because it’s owned by traditional banks. Current doesn’t support Zelle at all. Chime and Varo have limited Zelle functionality. If Zelle is critical for you, verify compatibility before switching.
What credit score do I need for digital banking apps?
None. These banks don’t check your credit score to open checking or savings accounts. They may check ChexSystems for banking history, but your credit score is irrelevant. This makes digital banks accessible to people with poor credit who might struggle opening traditional accounts.
Can I have multiple digital bank accounts?
Yes, there’s no rule against having accounts at Chime, Varo, and Current simultaneously. Many people use multiple digital banks for different purposes: one for bills, one for savings, and one for daily spending. This can actually provide backup access if one account has problems.
How do I close a digital bank account?
Contact customer support through the app or email to request account closure. First, transfer all funds out and ensure no pending transactions. Cancel any linked automatic payments or deposits. Most digital banks can close accounts within 1-2 business days once you confirm. Always get written confirmation of closure for your records.
Final Thoughts: The Best Digital Banking Apps Comparison Winner
If I could only choose one digital bank today, I’d pick Chime for most people. It’s the most balanced option, with proven reliability, the best ATM network, and truly free features, including credit-building. The automatic savings features genuinely help people save without having to think about it.
But that’s not the right answer for everyone. Varo is objectively better if you’re focused on savings growth or need structured credit building. The 5.00% APY on savings is significant over time, and the bank charter provides additional legitimacy that some people value.
Current serves specific needs extremely well: families with teenagers, people who desperately need early paychecks, and users who value premium features enough to pay $4.99 monthly.
The beautiful part about this digital banking apps comparison is that you don’t have to choose just one forever. Open the account that fits your current needs. Use it for a few months. If it’s not working, switch to another. There are no switching costs, no fees to leave, and no penalties for changing your mind.
I started with Chime in 2021 and still use it as my primary account. I added a Varo savings account in 2023 for the higher interest rate. I tested Current for six months when it launched Premium features. Now I use Chime for daily spending, Varo for saving, and I closed my Current account because I didn’t need the Premium features.
The digital banking revolution is here, and these three apps prove you don’t need to accept fees and restrictions from traditional banks anymore. Choose the digital bank that matches your financial priorities, make the switch carefully, and enjoy keeping more of your own money.
