What Revolut's savings account actually does

Revolut offers savings "vaults" — separate buckets within your Revolut account where you can set aside money and earn interest. The account itself is not a traditional savings account held at a bank; it is a feature inside the Revolut app that lets you park cash and watch it grow at a rate Revolut sets and changes. You do not move money to a different institution. You move it within the same app.

The interest rate varies depending on which vault you choose and how much you deposit. Revolut advertises rates that change weekly, sometimes daily. The money stays in your Revolut account the whole time, which means it is subject to Revolut's own financial stability and regulatory status, not the deposit insurance that protects money in a traditional bank savings account.

You can withdraw the money back to your main Revolut balance when ready, with no penalty. That ease of access is the trade-off: you get liquidity, but you also get less protection than you would at a bank.

Key Takeaways

  • Revolut savings vaults offer interest rates that change weekly and vary by vault type, so the rate you see today may not be the rate you earn next month.
  • Money in a Revolut vault is not covered by deposit insurance in most countries, which means if Revolut fails, your savings may not be protected the way they would be at a bank.
  • You can move money in and out of vaults when ready with no fees or penalties, so the account works well if you need to access your savings quickly.
  • Comparing Revolut rates to rates at traditional banks or other fintech savings platforms is necessary before deciding, because the highest rate today may not be the best deal for your situation.

How the interest rates work and what they actually pay

Revolut publishes its vault interest rates in the app, and they update frequently — sometimes multiple times per week. The rates are not fixed. You do not lock in a rate when you deposit; the rate you earn changes as Revolut changes it. If the rate drops, the interest you earn on your existing balance drops with it.

The amount you actually earn depends on three things: the rate Revolut is offering that week, how much money you have in the vault, and how long it stays there. A vault earning 4% annual interest on £1,000 generates roughly £40 per year, or about £3.33 per month. If the rate drops to 2%, that same £1,000 earns £20 per year. The difference is real money, but the sums are small unless you have a large balance.

Revolut does not charge fees to open a vault, deposit money, or withdraw it. The interest is paid directly into the vault, so your balance grows without you taking any action. However, you should check what the current rate is before you move money in, because the rate you see in marketing materials or on a comparison website may be outdated by the time you open the vault.

The deposit insurance problem

This is the biggest difference between a Revolut vault and a traditional bank savings account. In the UK, the Financial Services Compensation Scheme (FSCS) protects deposits up to £85,000 at authorised banks. In the EU, the Deposit may provide Scheme protects up to €100,000. Revolut is not a bank in most jurisdictions, and its vaults are not covered by these schemes.

Revolut holds customer money, but the legal structure means your savings are not insured the way they would be if you opened a savings account at Barclays, HSBC, or another traditional bank. If Revolut became insolvent, you would be an unsecured creditor, which means you would be behind secured creditors in the queue to recover your money. In practice, this risk is low — Revolut is a large, well-funded company — but it is a real structural difference that matters if you are deciding where to keep your emergency fund or long-term savings.

If deposit insurance is important to you, a traditional bank savings account or a savings platform that partners with an insured bank is a safer choice, even if the interest rate is lower.

When a Revolut vault makes sense

A Revolut vault works well if you already use Revolut for everyday spending and want to set aside money without moving it to another app or bank. The when ready access means you can move money back to your main balance in seconds if you need it, which is useful for short-term savings or money you might need to spend soon.

The vault also works if you are comparing rates across multiple platforms and Revolut's current rate is genuinely higher than what you can get elsewhere. Interest rates change constantly, so a rate that is best this week may not be best next month. Check what traditional banks, other fintech platforms, and savings bonds are offering before you decide.

Revolut vaults are less suitable if you want to lock in a rate for a fixed period, if you need deposit insurance protection, or if you are trying to keep your savings completely separate from your spending account. For those situations, a fixed-rate savings bond or a traditional bank savings account is a better fit.

How Revolut compares to other savings options

The main competitors are traditional bank savings accounts, fixed-rate savings bonds, and other fintech savings platforms. A traditional bank account at a major UK bank typically offers 4% to 5% on straightforward-access savings right now, with full FSCS protection. A fixed-rate bond locks in a rate for a set period — usually 1 to 5 years — and often pays slightly more than straightforward-access accounts, but you cannot withdraw early without a penalty.

Other fintech platforms like Chase, Chip, or Chip's savings partners offer rates similar to or sometimes higher than Revolut, and some partner with banks that provide deposit insurance. The trade-off is that you may need to move money between accounts or apps, which takes a day or two instead of seconds.

The right choice depends on what matters most to you: the highest rate, when ready access, deposit insurance, or simplicity. If you value all four equally, no single option wins. If you prioritise insurance and stability, a traditional bank is safer. If you prioritise rate and do not mind the lack of insurance, Revolut or another fintech platform may be worth it — but only if the rate is actually higher than what you can get elsewhere at that moment.

What to check before you move money in

Before you open a Revolut vault, look up the current rate in the app itself, not on a website or in an advertisement. Rates change frequently, and a rate quoted anywhere else may be out of date. Write down the rate you see and the date you see it, because you will want to compare it to what other platforms are offering.

Check what traditional banks are offering on straightforward-access savings accounts. Visit the websites of Barclays, Nationwide, Virgin Money, and any other bank you use or trust. Write down their rates too. If Revolut's rate is higher by a meaningful amount — say, 0.5% or more — and you do not need deposit insurance, a Revolut vault may be worth it. If the rates are similar, the insurance protection of a traditional bank probably matters more.

Also consider how long you plan to keep the money in the vault. If you think you might need it within a few months, when ready access is valuable. If you know you will not touch it for a year or more, a fixed-rate bond might lock in a better rate and give you peace of mind that the rate will not drop.

The real cost of choosing Revolut over a bank

The cost is not in fees — Revolut charges none. The cost is in what you give up: deposit insurance protection and the stability of a regulated bank. If Revolut's rate is 0.5% higher than a bank's rate, and you have £10,000 in the vault, you earn an extra £50 per year. If something goes wrong with Revolut and your money is at risk, you lose £10,000 to save £50. That is a bad trade.

However, if Revolut's rate is 1% higher, you earn an extra £100 per year on £10,000. Over five years, that is £500. Whether that is worth the risk depends on how confident you are in Revolut's stability and how much you value the insurance protection. There is no objectively correct answer, but you should make the trade-off consciously, not accidentally.

Frequently Asked Questions

Can I lose money in a Revolut vault?

You cannot lose money to a bad investment — the vault is not an investment product. You can only lose money if Revolut becomes insolvent and your balance is not recovered. This is unlikely but possible, which is why deposit insurance matters. At a traditional bank, your balance would be protected up to the insurance limit.

How often do Revolut rates change?

Revolut updates its vault rates weekly, sometimes more often. The rate you earn today may be different next week. You do not lock in a rate when you deposit, so your interest payment will change if the rate changes. Check the app regularly if you want to know what you are currently earning.

Can I withdraw money from a vault anytime?

Yes. Money moves from a vault back to your main Revolut balance when ready, with no fees or penalties. This makes vaults useful for short-term savings or money you might need to access quickly, but it also means you are not committing to leaving the money untouched for any period.

Is Revolut a bank?

Revolut is not a traditional bank in most countries. It is a fintech company that holds customer money and offers financial services, but it is not covered by the same deposit insurance schemes as banks. This is the main reason why a traditional bank savings account offers more protection, even if the interest rate is lower.

Should I move all my savings to Revolut?

No. If you have more than a small amount of savings, split it across accounts that offer both competitive rates and deposit insurance protection. Use a Revolut vault for money you might need to access quickly, and use a traditional bank or insured savings platform for your emergency fund and long-term savings.