Your Money

Revolut cuts interest rates for savers following ECB rate move

Digital bank which launched first savings accounts in Ireland in May reduces deposit rates to 1.7% from November 28th

Revolut began offering savings accounts to Irish customers earlier this year. Photograph: PA
Revolut began offering savings accounts to Irish customers earlier this year. Photograph: PA
Ciara O'Brien
Tue Oct 29 2024 - 17:04

Online bank Revolut has cut its rates for savers following last week’s reduction in interest rates by the European Central Bank.

The fintech, which has a banking licence in the EU and offers a range of current accounts, savings and loan products to more than 2.8 million Irish customers, said the reduction would take effect from November 28th.

The new rates for its free and “plus” subscribers will be 1.7 per cent, while savers paying €9 a month for the Premium plan will get 2.1 per cent interest on their savings. Subscribers to the Metal and Ultra plans, which cost €16 a month and €45 a month respectively, will earn 3 per cent and 3.49 per cent in interest respectively on their savings.

The move comes after the ECB said on October 17th it would reduce its key deposit interest rate by 0.25 per cent, bringing it to 3.25 per cent. That was the third time this year the bank has cut interest rates, bringing relief to mortgage holders, with the bank’s president Christine Lagarde saying the bank was “breaking the neck of inflation”.

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Revolut launched its first savings accounts in Ireland in May as it sought to capitalise on customers looking for better interest rates than those offered by the traditional banks. Interest on balances is paid out daily.

Separately, the bank said it had enabled Apple’s Tap to Pay on iPhone technology for its business and freelance customers, allowing them to take payments on Apple’s device in person without the need for any additional hardware.

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Ciara O'Brien

Ciara O'Brien

Ciara O'Brien is an Irish Times business and technology journalist