What Revolut is and what it is not

Revolut is a fintech company—a technology-based financial service—that offers a checking account and a savings feature, but it is not a traditional bank. This matters because Revolut's deposits are not insured the same way a bank account is. When you put money in a regular bank, the Federal Deposit Insurance Corporation (FDIC) protects up to $250,000 if the bank fails. Revolut's savings feature does not carry that same protection in the United States, though the company does hold customer funds in partner banks.

Revolut makes money by charging fees for currency exchange, premium account tiers, and other services. Its savings account is designed to be straightforward and low-friction—you open it on your phone, move money between your checking and savings when ready, and earn interest. But simplicity and low fees are not the same as safety or the best interest rate available.

Key Takeaways

  • Revolut is a fintech company, not a bank, so deposits do not carry FDIC insurance protection in the United States.
  • Revolut's savings rates are competitive with some online banks but lower than the highest rates available from traditional banks and credit unions.
  • You can open a Revolut account on your phone in minutes, but you will need a valid ID and a Social Security number.
  • Revolut works best if you already use their checking account and want to move money between accounts without friction or fees.
  • If safety and FDIC insurance are your priority, a savings account at an FDIC-insured bank or credit union is a more straightforward choice.

How Revolut's savings feature works

Revolut's savings account is a separate space within the Revolut app where you can hold money and earn interest. You transfer funds from your Revolut checking account to your savings space with a tap. There are no monthly fees, no minimum balance requirement, and no withdrawal limits—you can move money back to checking whenever you need it.

The interest rate Revolut offers changes over time and varies by country. In the United States, rates have ranged from around 4% to 5% annually, depending on when you check. This is competitive with some online banks but typically lower than the highest rates offered by smaller online banks or credit unions at any given moment. Interest is calculated daily and paid monthly.

The main appeal is convenience: if you already have a Revolut checking account and want a place to park money without opening a separate account elsewhere, the savings feature is frictionless. You do not have to log into a different website, remember a different password, or wait for transfers to clear.

The insurance and safety question

This is the central concern. Revolut holds customer funds in partner banks that are FDIC-insured, but Revolut itself is not a bank and does not carry FDIC insurance. This means if Revolut fails, your money is not automatically protected up to $250,000 the way it would be at a traditional bank. Revolut has stated that customer funds are held separately from company funds, but the legal structure is more complex than a straightforward bank account.

If you are new to banking or building an emergency fund, this distinction matters. A savings account at an FDIC-insured bank—whether online or in person—gives you a clear legal may provide. With Revolut, you are relying on the company's operational practices and the solvency of its partner banks. For some people, that trade-off is acceptable. For others, especially those with limited savings, the may provide of FDIC insurance is worth choosing a traditional bank instead.

How Revolut compares to traditional banks and credit unions

A traditional online bank like Ally or Marcus offers FDIC insurance, competitive interest rates, and a straightforward savings account. A credit union savings account also carries insurance (through the National Credit Union Administration, or NCUA) and often offers competitive rates, especially if you are a member. Both require you to open an account, but the process is straightforward and online.

Revolut's advantage is speed and integration: if you already use Revolut for checking, moving money to savings takes seconds. Its disadvantage is the lack of FDIC insurance and the fact that interest rates fluctuate and are not always the highest available. A traditional bank's advantage is the insurance may provide and the simplicity of a regulated financial institution. Its disadvantage is that you may have to open a separate account and manage transfers between institutions.

The choice depends on what matters most to you. If you want the absolute safest option with a clear legal may provide, choose an FDIC-insured bank or NCUA-insured credit union. If you already use Revolut and want a convenient place to save without opening another account, Revolut's savings feature is reasonable—but understand you are trading some safety for convenience.

Fees and what you actually pay

Revolut's standard checking and savings accounts have no monthly fees. You do not pay to transfer money between your checking and savings. You do not pay to withdraw money. This is genuinely useful if you are moving money frequently.

However, Revolut makes money in other ways. If you exchange currency, you pay a spread (a markup on the exchange rate). If you want certain features—like priority customer support or higher spending limits—you pay for a premium tier. If you use Revolut's investment features, you pay fees there as well. For a basic savings account, though, the account itself is free.

Who Revolut works well for

Revolut is a reasonable choice if you already use their checking account and want to save money without opening a separate account. It works well if you move money frequently between checking and savings and want that to happen when ready. It works well if you are comfortable with a fintech company and do not need the psychological reassurance of FDIC insurance.

Revolut is less suitable if you are building your first emergency fund and want the strongest possible safety may provide. It is less suitable if you want the highest interest rate available—you will likely find better rates elsewhere. It is less suitable if you prefer to bank with a traditional institution with a physical presence or a clear regulatory structure.

How to decide: questions to ask yourself

Do you already use Revolut for checking? If yes, their savings feature is convenient. If no, you would be opening a new account just for savings, which makes a traditional bank more practical.

Is FDIC insurance important to you? If you are new to banking or saving for the first time, the answer is probably yes. If you have substantial savings elsewhere and this is just extra money, the answer may be no.

Do you want the highest interest rate available right now, or do you want simplicity and convenience? Revolut prioritizes the latter. If you are rate-shopping, check what online banks and credit unions are offering this month—rates change frequently.

Do you move money between accounts often? If yes, Revolut's when ready transfers are valuable. If you move money once a month or less, the speed advantage disappears.

Frequently Asked Questions

Is my money safe in Revolut?

Revolut holds funds in partner banks that are FDIC-insured, but Revolut itself is not a bank. Your money is not covered by FDIC insurance directly. Revolut says customer funds are kept separate from company funds, but the legal protection is not as straightforward as a traditional bank account. If safety is your top concern, an FDIC-insured bank is clearer.

What interest rate does Revolut pay on savings?

Revolut's savings rate changes over time and has ranged from around 4% to 5% annually in the United States. Check the Revolut app for the current rate. This is competitive with some online banks but may be lower than the highest rates available elsewhere at any given moment.

Can I use Revolut if I am new to banking?

Yes, you can open a Revolut account on your phone with a valid ID and Social Security number. However, if you are new to banking and building your first savings account, a traditional FDIC-insured bank may be a better choice because of the insurance protection and the simplicity of a regulated institution.

Do I have to use Revolut checking to use Revolut savings?

You need a Revolut account to use their savings feature, which includes a checking component. You cannot open just a savings account with Revolut. If you want only a savings account, a traditional bank is a better fit.

What happens if Revolut goes out of business?

Revolut holds customer funds in partner banks, so your money would not disappear. However, the process of recovering your funds might be more complicated than if you banked directly with an FDIC-insured institution. This is a reason some people prefer the simplicity and clarity of a traditional bank.