Revolut Bank has launched an easy-access savings account with a 5% interest rate, making it the market leader in the UK, according to Moneysupermarket. The account, which became available last month, offers a competitive rate on deposits of up to £25,000 with unlimited withdrawals.
Key Features of the 5% Savings Account
To access the 5% rate, savers must first open a current account with Revolut Bank via its mobile app. The boosted rate is available for the first six months, after which the rate drops to between 2.9% and 4% depending on the plan type and savings currency. The Standard plan offers up to 2.9%, while the Ultra plan offers up to 4%.
Rachel Springall of Moneyfacts commented: "The latest offer from Revolut is enticing in the current savings market. On paper, savings accounts like the Santander Edge Saver and Cahoot's Sunny Day Saver both pay over 5%, but only on smaller balances. The boosted rate of 5% is only available for the next six months, so savers would be wise to make a diary note to review and switch in December."
Considerations Before Opening
While the account offers a high rate, there are some drawbacks. Revolut has no physical branches in the UK, so customers must manage their accounts entirely through the app. Albert Codorniu, general manager of savings at Revolut, said: "Implementing this boosted 5% rate is a commitment to passing tangible value back to our users."
Savers should also note that the account requires a Revolut current account, which may not suit those who prefer traditional banking services. The 5% rate is guaranteed until December, after which savers will need to review their options to maintain a competitive return.
Market Context
Revolut's entry into the UK savings market follows the lifting of restrictions on its banking licence. The account is designed to attract savers looking for easy access to their funds without penalty for withdrawals. However, the time-limited nature of the high rate means savers should be proactive about switching when the promotional period ends.
