By Oliver Smith on Wednesday 20 January 2021
Earning up to 0.65% AER for Metal subscribers with dollar balances.
With interest rates at historic lows, Revolut is offering its UK savers with USD balances a new option to park their cash in an Investec-powered savings account.
The USD Saving Vault comes with interest rates of between 0.4 per cent and 0.65 per cent depending on the customer’s Revolut subscription plan.
“Many of our customers choose to hold a number of different currencies in their Revolut accounts, and now we’re able to help their money grow with daily interest while they’re holding GBP or USD,” said Revolut’s CEO and founder Nik Storonsky.
Storonsky said bringing USD savings accounts to the UK is just the start, Revolut plans to roll the accounts out to other European markets in the future.
This move is strategically important as it moves Revolut further away from its role as a pure spending card, and towards being a place where travellers or those with overseas income might start holding larger balances with the fintech—something which Revolut can take advantage of if it manages to secure a banking licence.
Until now, UK savers with GBP balances have been able to earn between 0.2 and 0.4 per cent depending on their Revolut subscription.
“Since we launched the Vaults feature in April 2018, over 4.5m Personal, Group and Savings Vaults have been created globally, with an average of 6,000 new Vaults added each day.”
Despite being held in the US and powered by Investec, Revolut’s new USD Savings Vault deposits are still protected by the UK’s Financial Services Compensation Scheme (FSCS) up to the value of £85,000 (in USD equivalent).