The popular online-only bank is the latest provider to reduce its savings rates following three interest rate cuts from the ECB since June.
Revolut has announced that it’s cutting its instant-access savings rates by up to 0.4 percentage points effective immediately.
Revolut said in an email to savers that the “change reflects current economic conditions”.
It comes on the back of another cut in interest rates by the European Central Bank this month - its third since June.
Revolut launched instant-access savings accounts in Ireland back in May to much fanfare with the rate of interest based on the type of account a customer held.
It offered its Standard and Plus account holders a rate of 2%. But this has now been reduced to 1.7%.
And Premium customers will now get 2.1%, down from 2.5% previously.
The rates for those with a top-tier Metal or Ultra account will stay the same for now.
Customers who were already saving with Revolut will continue to get the old, higher rates until 28th November. However the new rates are effective immediately for new savers.
In August, N26, Revolut's German rival, cut its savings rates by up to 1.1 percentage points. While Raisin, the increasingly popular online marketplace for savings accounts across Europe, has also reduced the rates from some of its partner banks.
|
Revolut account |
Old savings rate |
New savings rate |
Change |
|
Standard |
2% |
1.7% |
-0.3% |
|
Plus |
2% |
1.7% |
-0.3% |
|
Premium |
2.5% |
2.1% |
-0.4% |
|
Metal |
3% |
3% |
No change |
|
Ultra |
3.49% |
3.49% |
No change |
More savings rate cuts to come?
Since June the ECB has cut rates by 0.75 percentage points in total as a result of rapidly easing inflation. And another cut is possible in December.
While this is leading to downward movement in mortgage rates, much to the delight of prospective first-time buyers and tracker customers no doubt, the flip side is that it’s also leading to downward pressure on savings rates.
There are always losers as well as winners to falling interest rates.
Strong competition in recent months for savers’ money from the likes of Bunq, Raisin, and Revolut itself has meant that savings rates in Ireland have held up well despite starting to fall in most other Eurozone countries. But this wasn't going to last forever.
Revolut is now the second major savings provider in Ireland to reduce its rates after N26 and it's likely other providers will follow suit over the coming weeks.
Compare savings accounts on bonkers.ie
Irish households currently have almost €160 billion resting on deposit with Irish banks. A record high.
But for various reasons, the majority of the money is still in accounts that pay little to no interest. So if you’re one of those people who has yet to move their money, consider doing something with your savings while half-decent rates are still available.
The good news is that you can easily compare savings accounts across all the main providers right here on bonkers.ie.
Use our comparison tool to quickly compare savings rates from the likes of AIB, Bank of Ireland, PTSB, Trade Republic, Raisin, Bunq and more!
