Revolut launches savings product for premium users

By Daniel Lanyon on Thursday 23 January 2020

Digital Banking

Its new easy-access account will offer a 1.35 per cent interest rate.

Revolut launches savings product for premium users
Image source: Bruno Cervera from Pexels

Revolut has entered the UK savings market, an increasingly competetive space for fintechs, in partnership with Flagstone and offering an easy-access savings account with a "market-leading" interest rate of 1.35 per cent.

With this account, Revolut says aims to tackle the consumer loyalty trap. The new feature, which is FSCS protected up to £85,000 through Paragon Bank, is available to its metal card users, whose sole tax residency is in the UK, who pay £12.99 per month for a host of premium features. 

Revolut Premium and Standard customers in the UK will be able to access Savings Vaults at a lower rate in the coming months. Revolut will be rolling out Savings Vaults to other European markets in the near future.

Only limited deposits will be accepted at the 1.35 per cent AER interest rate. After the limit is reached, any new deposits will receive a lesser rate although Revolut did not specify the specific amount.

There is no minimum deposit amount, withdrawals can be made at any time, and interest is paid daily.  Revolut customers have put aside over £1 billion into their Vaults. 

Nik Storonsky, Founder & CEO of Revolut said: “Interest rates have been minuscule in recent years, and this has directly impacted the options that people have when it comes to saving money. With the introduction of Savings Vaults, we can now offer our UK customers one of the most competitive rates in the country, with complete flexibility and protection.

“For us, this is another step towards our goal of democratising the financial services industry, and providing much greater value than traditional banks. As we push into 2020, we have a host of new products and services on the way that will help our customers to spend, save and manage their money more effectively.”

Sign up for our newsletters

Your daily 7am download of all things alternative finance and fintech.

Fintech and alternative finance headlines with an exclusive Editor's Note each week. Delivered Monday at midday.

AltFi's new weekly US newsletter breaking down the ins and outs of America's burgeoning fintech sector. Delivered Monday 9am EST/ 6am PST.