Business

Revolut launches savings account with interest of up to 3.49% a year

Financial platform tries to steal march on mainstream lenders with higher yielding savings accounts

Revolut: Digital-banking app is setting up new instant-access savings feature for Irish-based customers.

Eoin Burke-Kennedy
Thu May 23 2024 - 06:00

Digital-banking app Revolut has moved to undercut traditional lenders by offering Irish customers higher yielding savings accounts.

The company is launching a new instant-access savings feature on its platform which will enable Irish-based customers earn up to 3.49 per cent interest a year on their savings.

It will allow customers move their money between their main account and their savings account at any time, the company said.

“The Irish banking landscape is characterised by some of the lowest deposit rates in Europe, tricky or confusing limits, inaccessibility, and a real lack of competition,” Revolut Europe chief executive Joe Heneghan said.

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“Today, Revolut is stepping in with a solution that makes saving money much better and much simpler for the people of Ireland,” he said.

It will cost customers as much as €55 per month to access the top rate. Revolut pays 2 per cent on its free savings account, and has four paid tiers that pay higher rates.

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According to the Central Bank, the average rate offered to savers in Ireland holding their money in demand deposit accounts is just 0.13 per cent, a third of the 0.39 per cent average across the euro zone.

The average rate on offer to those who opt to keep their money on deposit for an agreed maturity was 2.51 per cent in March, again below the euro zone average of 3.16 per cent, though AIB and Bank of Ireland offer rates closer to 3 per cent on certain products.

Revolut, which claims to have 2.7 million customers in Ireland, said its new feature would allow customers access to their savings on-demand while earning competitive interest, “adding or withdrawing at any time”.

Albert Codorniu, general manager of savings at Revolut, said: “This is a key step in our mission to make Revolut the best choice for everyday banking.”

“With daily interest payments and instant-access withdrawals, secured by our fully licensed bank, we’re making it simpler and better than ever for our customers to save and grow their money in Ireland,” he said.

Eoin Burke-Kennedy

Eoin Burke-Kennedy

Eoin Burke-Kennedy is Economics Correspondent of The Irish Times

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