Quote from: Breneir Itravilatx on May 15, 2020, 04:09:30 PMVaro Money is a app-centered "fintech" startup base in San Francisco, something like three years old, that just got formal regulatory approval to be a "real" national US bank.
Burgermeister,
Can you share a bit more info about Varo? I am familiar with Ally Bank but not this particular institution.
Breneir
That kind of background means I'm a little bit concerned that if we swapped to them, we could have troubles as a result of them going under. Not lose-the-deposit troubles, since they're FDIC insured (that is, the US government backs depositors to $250,000, an amount we're well under), but still various possible difficulties involving access. That made a switch not worthwhile given that it translated to a bit over $3/year in interest at our current balance, but if Ally cut rates again this year and if Varo Money stayed where it was, then it might have become worthwhile, which is why I was keeping an eye on them.
You might notice I used the past tense there. They've dropped their rate to 1.41% since my last post, which not only means the immediate incentive went down, but indicates that they will indeed drop rates pretty much in concert with the overall market (including Ally) in the future. Which isn't remotely surprising, but also means it's not worth the hassle of a switchover, or risks that might attend their going under.