Revolut is changing the way we think about banking. It’s not a traditional bank—it’s digital, fast, and global. But does it live up to the hype? Should you trust it with your money?
The Core of Revolut: Is it Safe?
First things first: Is your money safe with Revolut?
Yes, but it’s different from a traditional bank. Revolut is an e-money institution, not a fully licensed bank in the UK. It’s regulated by the FCA, but deposits don’t have the same FSCS protection that you’d get with banks like Lloyds or Barclays. What does this mean? Your funds are kept safe in segregated accounts, but they aren’t covered by the UK’s £85,000 deposit guarantee. That’s something to consider.
Side Note: While it doesn’t have FSCS protection, Revolut still keeps your money in safe accounts separate from its own operating funds.
Why is Revolut Popular?
People love Revolut because it’s simple, global, and fast. You can send money anywhere in the world, hold multiple currencies, and trade stocks and cryptocurrencies—all in one app. And you can open an account in minutes.
Here’s why it stands out:
- No hidden fees on currency exchange
- Easy international transfers
- Real-time notifications for every transaction
- The option to buy cryptocurrencies and stocks
It’s like having your traditional bank, investment broker, and travel card all in one place. Plus, the app makes it super easy to track spending, save money, and manage your budget.
How It Started: From an Idea to a Billion-Dollar Bank
Revolut was launched in 2015 by Nikolay Storonsky and Vlad Yatsenko, two former bankers who wanted to fix the problems they saw with traditional banks. Their goal? To make banking easier, cheaper, and more transparent.
In just a few years, Revolut grew to become a $33 billion company, funded by top investors like DST Global and Index Ventures. It now serves over 25 million customers across 35 countries. And it’s still growing.
What You Get with Revolut
Revolut offers a wide range of services—some you’d expect from a bank, and some that go beyond banking. Here’s a quick look:
1. Multi-Currency Accounts
Revolut is perfect for anyone who deals with multiple currencies. You can hold, send, and exchange money in over 30 currencies with no hidden fees.
2. Crypto & Stock Trading
Want to dabble in cryptocurrency or the stock market? You can buy and sell cryptocurrencies like Bitcoin and trade stocks commission-free—all from the app.
3. Premium Plans
Revolut has several premium plans like Metal and Premium, which give you perks like a concierge service, travel insurance, and a shiny metal card. (Yes, it’s an actual metal card!)
So, Should You Use Revolut?
Yes—if you love the convenience of digital banking.
Revolut is ideal for travelers, freelancers, and anyone who prefers handling their finances from their phone rather than going into a bank. You can open an account quickly and get access to many features you wouldn’t find in traditional banks.
But keep in mind:
- It’s not a full UK bank, so your money isn’t protected by FSCS.
- Some services, like premium accounts or crypto trading, come with fees.
- While it’s great for international transactions, it may not replace your main bank account.
Side Note: Use Revolut alongside your main bank account to get the best of both worlds. It’s a perfect tool for travel, but you might want the extra security of FSCS for your main savings.
How is Revolut Funded and Structured?
Revolut is backed by major investors, raising over $1.7 billion since it launched. Its unique structure as an e-money institution means it’s highly flexible. And while it’s not a traditional bank, Revolut operates under strict regulations set by the FCA.
What About Fees?
Revolut is known for its transparent fee structure. For everyday users, the basic account comes with no monthly fees. However, there are some charges for premium features or certain services like currency exchanges on weekends, cryptocurrency trading, or cross-border transfers over specific thresholds.
FAQ: What You Need to Know About Revolut
Is Revolut a Real Bank?
No, it’s an e-money institution. Your money is safe but doesn’t have FSCS protection.
Can I Use Revolut Internationally?
Yes, it’s perfect for international use. You can send, hold, and exchange over 30 currencies with no hidden fees.
Is Revolut Good for Cryptocurrency?
Yes, you can trade cryptocurrencies like Bitcoin and Ethereum directly from the app.
How Does Revolut Make Money?
Revolut earns through premium accounts, currency exchange fees on weekends, crypto trading, and interest on loans.
Does Revolut Offer Loans?
Yes, Revolut offers loans and credit services, but these come with additional terms and conditions.
Final Thoughts
Revolut Digital Bank is a powerful alternative to traditional banking, especially for those who value convenience, international transfers, and modern financial services. However, it’s crucial to understand the differences in protection and structure when compared to traditional UK banks. While Revolut offers innovation and convenience, users should weigh the benefits against the potential risks, especially in terms of deposit protection.
