Competition in the UK savings market is intensifying, as challenger bank Revolut is offering a 5 per cent variable savings rate for new customers.
The deal applies to new instant access savings accounts, featuring an initial promotional annual equivalent rate (AER) of 5 per cent until 4 December.
Customers must sign up for an account before 4 August to be eligible. When the promotional rate ends, savings rates will revert to the ‘base rate’ of the customer’s deal, Revolut said.
Balances above a £25,000 threshold will also transition to other rates, depending on the plan, according to the bank. This follows Revolut’s launch as a licensed bank in the UK earlier this year.
Albert Codorniu, general manager of savings at Revolut, said: “Implementing this boosted 5 per cent rate is a commitment to passing tangible value back to our users.”
Terms and conditions will apply to the offer. The 5 per cent boosted rate is only eligible for new UK customers aged over 16, signing up to Revolut for the first time.
Savers can also get some other 5 per cent savings deals on the market. Nationwide Building Society offers a savings rate of 5 per cent for its members, which is fixed for 15 months for people who are able to lock balances of up to £10,000 away for the period.
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.
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This financial milestone coincides with a 30 per cent expansion of its global customer base, now standing at 68.3 million.
The company attracted an additional 16 million new retail customers, while its business client roster grew by a third to 767,000.
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.