Low cost and easy to use, Revolut is among the top digital-only financial providers for regular travellers and those sending money overseas. It comes with a transparent fee structure and transfers are safe and secure.
Pros
- Fee-free account
- Fee-free money transfers Mon-Fri (subject to limits)
- Savings interest
- Budgeting tools
Cons
- Less competitive exchange rates
- Large transactions mean higher fees
- Doesn’t offer full banking services (no overdraft)
Table of Contents
Revolut is an innovative digital finance provider which is challenging the high street banks and traditional money transfer companies with its value-added services and competitive pricing.
It has become a favourite choice for many frequent travellers as well as those who need to send money overseas. But is it right for you? Read our detailed review to see what Revolut has to offer and the relative pros and cons.
Revolut at a glance
Revolut launched in 2015 offering a prepaid card and an app-only overseas payments service. It has expanded rapidly and now has 35 million customers worldwide and offers a comprehensive range of payment services for personal and business customers, as well as savings and investment products.
Is Revolut a bank?
Although Revolut is authorised by the Financial Conduct Authority under electronic money (e-money) regulations it does not have a banking licence in the UK. This means customers’ money is not automatically protected by the Financial Services Compensation Scheme.
However, Revolut says customers’ money does benefit from FSCS protection up to the maximum limit of £85,000 per person, as cash can be held and ring-fenced with its partner banks which can offer this protection.
Key features
- Account types
Revolut offers five different levels of personal accounts, an account for under-18s and a business account. Its standard account has no monthly or annual fee, while the other four personal accounts all charge a monthly fee in exchange for additional benefits or services (more on this below). Interest, from 2.29% gross, is paid on savings held in Revolut personal account. Joint accounts are also available.
- Money transfers
From the UK, Revolut offers overseas money transfers in more than 80 currencies. Rather than an interbank exchange rate, Revolut operates on its exchange rate. It’s important to weigh this up against alternatives before committing to a money transfer.
Revolut’s money transfers are fee-free on weekdays – Monday to Friday – and to a limit of £1,000 per month on the Standard and Plus accounts. Charges apply for transfers made at weekends on all accounts, including premium accounts, and charges apply over and above the £1,000 per month limit on Standard and Plus accounts.
The company recently added a new AI-powered anti-fraud tool to its app, which alerts customers before they make a transaction deemed suspicious.
- Speed of transfers
The standard time for overseas transfers is one to two working days, depending on the type of the transaction (whether it’s a card payment or bank transfer, for example) and the policy of the receiving bank. Some transfers can take up to five days.
- Budgeting tools
Revolut offers advanced budgeting tools to help you keep track of your spending, as well as your savings goals. You can set up different pots of money, called ‘Pockets’ for different purposes to help you keep on track and you can also get reminders for upcoming payments and alerts about expiring trials and subscriptions.
Accounts and pricing
Revolut has five personal accounts. Its free Standard account offers a free debit card with fee-free spending overseas. But as Revolut is not a bank there is no overdraft facility available on any account.
Customers can make up to five cash withdrawals, or withdraw up to £200 per rolling month (whichever is reached first) anywhere in the world, with no withdrawal fees. The fee is 2% (min £1 per withdrawal) thereafter.
Revolut’s fee-charging accounts include Plus (£3.99 a month), Premium (£7.99), Metal (£14.99) and Ultra (£45 a month). Each account offers extra added perks and benefits which increase the more you pay for your account. Cash machine withdrawals are also higher on Premium, Metal and Ultra accounts.
Benefits include airport lounge access, shopping discounts, cashback on card spend, baggage insurance and investment benefits, such as commission-free share trading, among other perks.
Savings interest (savings can be made in UK Sterling, US dollars or euros) is paid at 2.29% for Standard customers, 2.39% for Plus, 3% on Premium, 4% on Metal and 4.75% on Ultra. Your savings account can be accessed without penalty at any time.
Bank transfers within the Single Euro Payments Area (SEPA) are free with Revolut, but a variable fee applies on transfers outside the SEPA. There are fees for card transfers, which vary depending on the size of the transaction but could be up to £5, for example. Transfers are free and instant to other Revolut customers.
Business account
Revolut offers a range of business accounts, with four pricing levels, for companies and freelancers, including a fee-free account. Accounts with a monthly fee offer added perks and benefits. Business accounts also offer forward contracts on currency transfers (this is not available on personal accounts with Revolut). A forward contract enables you to lock into an exchange rate now for a transaction at a later date.
What are the benefits of Revolut?
The main benefits of using Revolut are the fee-free card spending overseas and the ease and low costs of overseas bank transfers. Transfers up to £1,000 per month are free if you exchange the money between Monday and Friday. Transfers between Revolut customers are always free.
Revolut customers also like the innovative budgeting and savings tools on offer.
There is also cashback on accommodation booking through Revolut Stays, its travel booking service.
The money transfer provider has a 4.3 out of 5 rating on Trustpilot.
What are the drawbacks of Revolut?
While Revolut could be a great choice for money transfers, it doesn’t offer the full banking services of some of its competitors, such as Monzo or Starling Bank.
This means it won’t suit people who want to pay in cash and cheques, for example, or who want access to an overdraft facility or other lines of credit.
It is also important to note that Revolut is a digital only provider, so there are no branches or call centres and customer service is likely to be limited for those with the free account.
Revolut’s exchange rates may also sometimes be less competitive than other providers. Although its fee-free weekday transfers (up to £1,000 per month) could mean it still works out cheaper than competitors, depending on your specific transaction.
Is Revolut the right choice for me?
While Revolut doesn’t offer a full banking service (no overdraft or credit, and you can’t pay in cash or cheques) it will suit those who need an account for travel and foreign exchange services at decent rates, but who don’t need to use it as a day-to-day bank account.
But while fee-free debit card spending has no limits overseas, there is a £1,000 limit on cash withdrawals on Revolut’s standard account, which could be a bit limited for some customers.
Consumers who want extra perks, such as travel discounts, cashback on holiday bookings and discounted airport lounge access, might also want to consider Revolut.
Although it’s important to note the more premium benefits are only available to customers with one of its fee-charging accounts, such as Metal and Ultra.
To open an account with Revolut, you’ll need to be at least 18 years old.
Frequently Asked Questions
Is Revolut worth getting?
Revolut’s standard account could be an ideal choice for regular travellers. That’s because you can use the same card and account to spend in more than 150 currencies depending on your destination – and pay no foreign transaction fees on your spending.
Revolut also offers budgeting tools and free currency transfers when made to other Revolut customers.
However, it may not be the best option for customers in search of an everyday bank account.
Currently, it does not offer a full range of banking services such as an overdraft facility or the option to pay into your account using cash and cheques.
And since Revolut is a digital-only provider, there are no physical branches if you favour in-person support.
How much does it cost to get a Revolut account?
Revolut offers several plans and the cost of running your account varies depending which one you choose.
Revolut Standard, for example, is free to open and there are no monthly operating fees. The first physical debit card is free (although a delivery fee applies). Any additional physical debit card costs £9.99.
The Revolut Plus account costs £3.99 to operate. Again, the first physical debit card is free, although a delivery charge applies.
Revolut Premium costs £7.99 per month and there’s a one-off payment of £9.99 for a physical debit card.
Revolut Metal account costs £14.99 per month and a physical debit card (which is made of solid reinforced steel) costs £39.99.
Revolut Ultra costs £45 per month, with a one-off payment of £49.99 to get a physical (platinum plated) debit card.
Plus, Premium, Metal and Ultra account holders are not charged for additional debit cards.
Can Revolut be trusted?
Although Revolut is not a bank, it is regulated by the Financial Conduct Authority (FCA) as an e-money institution.
This means your cash must be ring-fenced from the provider’s other assets so it’s safeguarded should the provider go bust.
Is there a better alternative to Revolut?
It’s always worth comparing different providers to ensure that you get the most suitable account.
For example, Starling Bank offers fee-free spending overseas in addition to a range of everyday banking services, including overdrafts and in-credit interest.
We’ve rounded up our pick of the best Revolut alternatives for a detailed summary of different accounts to consider.
Can I use Revolut like a normal bank?
Even though Revolut is not a bank, it offers some everyday banking services including setting up direct debits, making payments, bank transfers, and cash withdrawals.
However, it does not offer extended banking facilities such as overdrafts and depositing cash or cheques into the account.
Is the Revolut card accepted everywhere?
Revolut offers card options powered by Visa or Mastercard. Both payment options are widely accepted globally.
Is there a minimum balance for Revolut?
There is no minimum balance requirement to run a Revolut account.
However, if you intend to make a payment or withdraw cash from an ATM, you must make sure you have enough money in your account to cover pending transactions.
How do I avoid currency exchange fees with Revolut?
Regardless of your Revolut plan, making a currency exchange between 5pm on Friday and 6pm on Sunday New York time (when the US markets are closed) will incur a 1% fee per exchange.
Costs for transfers outside the times then depend on your particular plan’s ‘fair usage limit’.
For example, the Revolut Standard has a limit of £1,000 which a fee of 1% per exchange applies. Revolut Plus account has a £3,000 limit, after which a fee of 0.5% applies.
However, there is no monthly limit on currency exchange with Premium, Metal or Ultra accounts.
Do I need to tell Revolut I am going abroad?
It’s not necessary to inform Revolut that you are heading overseas. However, it’s worth checking that your contact details are correct should it need to contact you while you’re away.