Digital challenger bank Revolut has announced a new savings accounts for users in the UK market. The bank says the savings accounts will be available to Revolut Metal customers and earn a 1.35% interest rate on deposits – one of the higher rates of returns in the market for accounts that allow withdrawals on demand. Savings Vaults are currently only available in British Pounds to Revolut Metal customers whose sole tax residency is in the UK. Metal accounts are Revolut’s top service offered via a monthly subscription of £12.99 per month.
The “easy-access Savings Vaults” are deposited with Paragon Bank and are protected by the FSCS up to the value of £85,000 for eligible customers. Savings Vaults also allow Revolut customers to round-up their card payments to the nearest whole number and instantly save their spare change. There is no minimum deposit amount, withdrawals can be made at any time. Interest is paid daily.
Revolut launched the Vaults feature in 2018 and reports over 2.5 million users with 6,000 new Vaults being created each day. Currently, Revolut says over £1 billion is being held in these Vaults.
Nik Storonsky, Founder & CEO of Revolut noted that interest rates have been “minuscule” recently, due to the historically low rate environment:
“With the introduction of Savings Vaults, we can now offer our UK customers one of the most competitive rates in the country,” said Storonsky. “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.”
Revolut Premium and Standard customers in the UK will be able to access Savings Vaults at a lower rate in the coming months. Revolut said it will be rolling out Savings Vaults to other European markets in the near future.
It appears that the offered 1.35% interest rate is promotional as only a limited amount of deposits may claim that rate and after the limit is reached a lesser rate will be given to deposits.
Only limited deposits will be accepted at the market-leading 1.35% AER interest rate. After the limit is reached, any new deposits will receive a lesser rate.
Revolut launched in 2015 with a vision of building the world’s first truly global bank and has since grown to over 10 million retail customers, and signed up over 300,000 business customers, worldwide. With Revolut, customers can spend and transfer money globally at the real exchange rate, exchange currencies in the app, manage their money with instant analytics and budgeting controls, buy and sell cryptocurrencies, buy and sell stocks commission-free, and now have the tools to save better and achieve their goals faster.