Revolut has launched a savings product for Irish customers which will pay them a daily interest rate of up to 3.49%.
The digital bank is growing rapidly across the country having already signed up 2.7 million customers and this move is set to put it up to the other three main banks.
With such a strong customer base, experts say the new move could be a huge gamechanger for Revolut.
The company’s new Instant Access Savings will give customers interest on deposits at a rate of 2% AER (annual equivalent rate) for those on Standard and Plus plans.
Those with a Premium account will get a rate of 2.5%, with 3pc paid on the Metal account, and Ultra account holders getting 3.49pc. There is a fee of €55 a month, or €540 a year, for an Ultra account.
The Standard plan is free, but there is a monthly fee of €3 a month for the Plus plan.
Revolut’s launch of what is a demand deposit account, with rates from 2pc to 3.49pc, compares with demand deposit rates of a fraction of 1pc from AIB, Bank of Ireland and PTSB.
This is just the latest product from Revolut, which already offers motor insurance, personal loans, credit cards, buy-now-pay-later products and investment products that enable customers to invest in money market funds to grow their wealth in either euro, dollars or sterling.
Its founder has also spoken about launching a mortgage product here.
Revolut said its new savings account would allow customers to move their cash into their savings as soon as their salaries reached their accounts.
This would mean they would be earning interest on those funds every day, unlike other banks.
Customers who want to earn higher interest rates can upgrade their existing plans from Standard to paid plans within the app.
“Customers will have access to their funds on-demand while earning competitive interest, adding or withdrawing at any time,” Revolut said.
Revolut Europe partner and chief executive officer Joe Heneghan 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.”
