Competition in the savings market is intensifying as challenger bank Revolut introduces a 5% variable savings rate for new customers. The offer applies to new instant access savings accounts, with an initial promotional rate of 5% AER (annual equivalent rate) running until December 4.
To be eligible, customers must sign up for an account before August 4. After the promotional period ends, savings rates will revert to the base rate of the specific plan the saver is on, according to Revolut. Balances exceeding £25,000 will also transition to other rates depending on the plan.
Revolut launched as a licensed bank in the UK earlier this year. Albert Codorniu, general manager of savings at Revolut, stated: "Implementing this boosted 5% rate is a commitment to passing tangible value back to our users."
Terms and conditions apply to the offer. The 5% boosted rate is available exclusively to new UK customers aged over 16 who are signing up to Revolut for the first time.
Savers can also find other 5% savings deals on the market. For instance, Nationwide Building Society offers a 5% savings rate for its members, fixed for 15 months, allowing balances of up to £10,000 to be locked away during that period.
Key Details of the Revolut Offer
The promotional rate of 5% AER is variable and applies to instant access savings accounts. Customers must open an account before August 4 to benefit. After December 4, the rate adjusts to the plan's base rate.
Eligibility Requirements
- New UK customers only
- Aged 16 or over
- First-time Revolut sign-up
Balances above £25,000 may earn different rates depending on the account plan. Revolut emphasizes that the boosted rate reflects its commitment to customer value.
Comparison with Other Offers
Nationwide Building Society provides a similar 5% rate but with a fixed term of 15 months and a maximum balance of £10,000. Unlike Revolut's instant access account, Nationwide's deal requires locking funds away.
As the savings market heats up, consumers are encouraged to compare terms and conditions to find the best option for their needs.
