Revolut has entered the UK savings market, in partnership with Flagstone, offering premium account customers an easy-access savings account with a limited market-leading interest rate of 1.35% AER
Revolut is aiming to tackle the consumer loyalty trap, where over a third (33%) of UK consumer cash is sitting in easy access savings accounts opened over five years ago receive interest rates 0.82% lower than accounts opened more recently.
The new account is an extension of Revolut's popular Vaults feature, which allows customers to round-up their card payments to the nearest whole number and instantly save their spare change. Launched in April 2018, over 2.5 million Vaults have been opened - with an average of 6,000 new Vaults created every day. To date, Revolut customers have put aside over £1 billion into their Vaults.
Revolut premium customers - who currently pay £150 per annum for the privilege - can now convert their existing Vault into a Savings Vault and make regular and one-off payments into the account. Funds are deposited with Paragon Bank and protected by the FSCS up to a value of £85,000.
Nik Storonsky, founder & CEO of Revolut says: “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."
Savings Vaults are currently only available in GBP to Revolut Metal customers whose sole tax residency is in the UK. Revolut Premium and Standard customers in the UK will be able to access Savings Vaults at a lower rate in the coming months.
Revolut has set an unspecified limit on deposits earning the headline 1.35% AER rate. After this ceiling is reached, any new deposits will receive a lesser rate.