A UK bank has confirmed a 5% interest rate on its newly launched savings account for a limited time. Revolut confirmed the interest rate is available now, but the cut-off date to apply for it is August 4.
Financial experts believe the account will be “enticing” for those looking to save a little extra money for the remainder of the year. Revolut’s new account offers a 5% interest rate on deposits of up to £25,000 from today (June 8), with unlimited withdrawals. The account will maintain its 5% interest rate regardless of how many withdrawals are made, but the rate will drop in December.
Rachel Springall of Moneyfacts, speaking to Sky News, said the account would prove promising to those wanting to save in the short-term. She said: “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.”
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.”
Terms and conditions will apply to the offer. The 5% boosted rate is only eligible for new UK customers aged over 16, signing up to Revolut for the first time.
The digital banking firm, which recently secured its long-awaited full banking licence in the UK, reported pre-tax profits of £1.7 billion, a substantial rise from £1.1 billion in the preceding year.
Earlier this month, Revolut received regulatory approval for a full banking licence in the UK, nearly five years after its initial application.
The company also applied for a banking licence in the US in March and currently operates as a licensed bank in over 30 of its 40 markets worldwide, underscoring its rapid global expansion and strategic push into regulated financial services.