Competition in the savings market is intensifying as challenger bank Revolut introduces a 5 per cent variable savings rate for new customers. The offer applies to new instant access savings accounts, with a promotional rate of 5 per cent AER (annual equivalent rate) running until December 4.
To benefit, savers must open an account before August 4. After the promotional period ends, the rate will revert to the base rate of the applicable savings plan, according to Revolut. Balances exceeding a £25,000 threshold will also transition to other rates depending on the plan. Revolut launched as a licensed bank in the UK earlier this year.
Details of the Offer
The 5 per cent boosted rate is exclusively available to new UK customers aged over 16 who are signing up for Revolut for the first time. Terms and conditions apply.
Albert Codorniu, general manager of savings at Revolut, stated: “Implementing this boosted 5 per cent rate is a commitment to passing tangible value back to our users.”
Other Competitive Savings Deals
Savers can also explore other 5 per cent savings deals currently on the market. Nationwide Building Society offers a fixed 5 per cent rate for 15 months on balances up to £10,000 for its members.
Last week, consumer champion Martin Lewis urged savers to review their savings account interest rates. He warned that anyone earning less than around 4 per cent could be missing out on hundreds or even thousands of pounds annually. In the latest Money Saving Expert (MSE.com) newsletter, Lewis highlighted that millions still have money in accounts with poor returns, despite competitive deals offering over 4.5 per cent.
Lewis said: “Owt under 4 per cent and you're letting them rip you off.” He added: “Millions of you are allowing banks, and some building societies, to rip you off with paltry interest. The shift in the UK's interest rate prospects means top savings rates have recently increased, with a strong set of deals paying over 4.5 per cent. Yet many savers still leave their money at a paltry average 2 per cent. Stop it! Make 'em pay for your business.”
