Digital bank Revolut has announced US dollar savings accounts for UK customers. According to a release, Revolut will offer interest rates of 0.65% AER for Metal customers, 0.50% AER for Premium customers, and 0.40% AER for Plus customers on US dollar funds. There is no minimum deposit and funds may be withdrawn at any time.
Revolut states that funds in USD Savings Vaults are deposited with Investec and protected by the Financial Services Compensation Scheme of up to £85,000 (in USD equivalent) for eligible customers.
UK customers may also choose to save in pounds sterling, with Metal and Premium subscribers earning 0.40% AER and Plus subscribers earning 0.20% AER. Savings Vaults deposits are limited to GBP £85,000 (or currency equivalent) per bank.
Nik Storonsky, founder and CEO at Revolut, said that many of their customers choose to hold a number of different currencies in their Revolut accounts and now they are able to provide daily interest in pounds and dollars:
“The decline in interest rates over recent years has directly impacted the options that people have when it comes to saving. We’re delighted that we can now offer our UK customers one of the most competitive rates in the country, with complete flexibility and protection. As we start 2021, we’re looking forward to helping our customers save and manage their money more effectively.”
Marsel Nikaj, Head of Savings at Revolut, added that since they launched the Vaults feature in April 2018, over 4.5 million Personal, Group and Savings Vaults have been created globally, with an average of 6,000 new Vaults added each day.
David Hunt, Head of Funding Partnerships for Investec, said:
“By partnering with Revolut, we will widen our distribution within the UK digital savings market at a time when savers are progressively looking for easy to manage digital solutions. We’re delighted to be working closely with Revolut as we support digital platforms in the financial services sector with market-leading savings accounts.”
Personal Vaults also allow customers to hold over 30 currencies. Group Vault owners can also give withdrawal permissions to other members, giving owners control over who can take money out.
Revolut says that Savings Vaults are currently available in the UK and US, and Revolut plans to roll out the product to other European markets in the future.