‘Guaranteed to be hugely popular’ – Revolut puts it up to banks with savings accounts offering generous rates

The money app, which claims it has 2.7 million customers in this country, is piling on the pressure, with savings rates of up to 3.49pc. It said the interest would be paid daily.

Finance experts said the fact Revolut now had so many customers here meant the new savings account was almost guaranteed to be hugely popular.

What Revolut is calling its Instant Access Savings will give customers interest on deposits at a rate of 2pc AER (annual equivalent rate) for those on Standard and Plus plans.

Those with a Premium account will get a rate of 2.5pc, 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.

Revolut to put the squeeze on the banks with new savings product

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.”

The most recent Central Bank ­figures show banks here are paying an average of just 0.13pc on overnight deposit rates. This is on funds that can be withdrawn immediately without penalty and also includes current accounts.

The average interest rate on new fixed-rate household deposits, where funds have to be left for a period to get the advertised rate, with agreed maturity was 2.51pc in March.

Digital bank Bunq launched an instant-access savings account here at the start of the year that pays an interest rate of 2.46pc.

Other digital savings products include services offered by Raisin, and Trade Republic offers as high as 4pc, but it typically places money with third-party banks and institutions.

Daragh Cassidy, of price-comparison site Bonkers.ie, said higher rates of interest were available from other providers, but added: “The fact that Revolut has so many customers means the new savings account is almost guaranteed to be hugely popular.”