Revolut Offers Up to 5% Rate on Savings Account
Interest rates at big banks are close to zero during the coronavirus pandemic. So new financial companies are trying to attract customers by, doing the opposite. One of then is Britain’s Revolut, which announced a new 4.5% “bonus” on top of its base 0.25% annual interest rates for American savers.
Users subscribed to Revolut’s “Premium” and “Metal” accounts will get a 5% rate on their savings, while standard customers are entitled to a 4.75% rate. Premium accounts come with a $10 monthly fee, while Metal accounts cost $17.
This is not interest earned the normal way. Revolut says it’ll pay out the 4.5% bonus directly from the revenues it makes on the fees it charges merchants every time a customer uses their card. There are a few things to keep in mind. First, you can’t earn the top 5% rate unless you’re a paying user. Second, you’ll only earn the additional interest on the total amount you’ve spent the previous month. So if you had $500 in your account the previous month, but only spent $100, the 4.5% bonus would only apply to the $100.
For the first month you have your Savings Vault, you’ll earn a bonus of 4.50% on the amount you spent last month or $1,000 – whichever is greater. You will start earning this bonus when you keep eligible funds in your Savings Vault for a full day. There is no minimum balance required.
With Revolut, your money is deposited in a FDIC insured bank account and is protected for up to $250,000. Revolut is free to join.