Revolut, the digtal challenger bank, has launched a limited-time boosted 5% interest rate on its instant access savings account for new customers, according to the report.. The offer applies to balances up to £25,000 and runs until 4 December, after which the rate reverts to the underlying plan rate. This move comes five months after Revolut obtained its full UK banking license in March, signaling its push to attract savers with a time-limited incentive.

The £25,000 cap and the 4 December deadline

The promotional 5% rate is only available for six months on balances up to £25,000, as the report states. After the deadline, the interest rate drops to the standard variable rate tied to the customer's subscription plan — 2.9% for the free Standard plan, for example. That means a saver maxing out the cap would earn roughly 3.95% on average over a full year, accounting for the boost. The clock is ticking, and savers who miss the deadline lock in a much lower yield.

Revolut's account, powered by ClearBank, protects deposits up to £120,000 under the Financial Services Compensation Scheme (FSCS). However, the report notes that this protection applies per banking institution, so customers with other ClearBank accounts must ensure their total across all accounts does not exceed that threshold. This is a fine print detail that could catch savers unaware.

Why the Ultra plan's £55 monthly fee might still pay off

Revolut offers five subscription tiers, each with a different underlying rate. The free and Plus (£3.99/month) plans both offer a standard 2.9% variable rate, according to the report. The Premium plan (£7.99/month) gives 3.25%, while the Ultra plan (£55/month) provides 4%. With the 5% boost, an Ultra plan holder could average 4.5% over 12 months — but the high monthly fee only makes sense if the additional perks — airport lounge access, WeWork credits, and a Financial Times subscription — are fully used. For most savers, the free plan's blended rate of 3.95% is more realistic.

The report emphasizes that interest earned may be subject to tax if it exceeds the personal savings allowance,as the account is not an Individual Savings Account (ISA). Savers on higher tax brackets should factor in this potential hit when comparing options .

Competitors at 4.21% and 4.23%: what the fine print reveals

Prospective savers should compare Revolut's offer with alternatives cited in the report.. Secure Trust Bank provides a 4.21% variable rate on its easy-access account without a short-term boost, while Cynergy Bank offers 4.23% variable including a 2% boost for 12 months — meaning the rate will fall sharply after the first year.. for tax-free savings,cash ISAs like Trading 212's (4.76% variable, including a 1.16% fixed 12-month bonus) and Moneybox's (4.75% variable, but with a £500 minimum deposit and a steep rate reduction to 0.75% after more than three withdrawals in a year) may be more attractive.

These comparisons, as reported, highlight the importance of reading the fine print on withdrawal limits, fees, and tax treatment. Revolut's offer is competitive for a six-month horizon, but long-term savers may find better value elsewhere.

What remains unclear about Revolut's long-term savings strategy

The report does not specify whether Revolut plans to extend the promotion beyond December or offer similar boosts to existing customers. It also leaves unanswered whether the underlying rates — which vary by subscription plan — will be adjusted after the promotional period ends. Furthermore, the report notes that the account is not an ISA, but does not detail any future plans from Revolut to introduce one, which could be a key missing piece for tax-conscious savers.

These unknowns suggest that the current offer is primarily a customer acquisition tool, not a permanent rate enhancement. Savers should weigh the short-term gain against the hassle of moving money again when the boost expires.