Challenger bank Revolut has unveiled a market-leading 5% AER (variable) savings rate for new UK customers, putting it ahead of rivals in the battle for savers’ cash.
The new offer is available on Revolut’s Instant Access Savings Account and applies to balances up to £25,000. Customers who sign up between 5 June and 4 August 2026 can secure the boosted rate until 4 December 2026, after which their savings will revert to Revolut’s standard rates, which currently range from 2.9% AER to 4% AER depending on account tier.
The move follows Revolut’s launch as a licensed UK bank earlier this year and comes at a time when many savings providers have begun reducing rates in response to expectations of lower interest rates.
Albert Codorniu, General Manager of Savings at Revolut, said the offer demonstrates the company’s commitment to helping customers grow their wealth while maintaining flexibility and access to their money.
Customers can withdraw funds instantly without penalties, there are no minimum balance requirements, and interest is calculated and paid daily.
Is Revolut Good For A Savings Account?
Revolut’s savings proposition has become increasingly competitive. The combination of a top-paying introductory rate, daily interest payments and instant access makes it attractive for savers who want flexibility.
Unlike some traditional banks, Revolut also offers features such as automatic round-ups from card spending and scheduled deposits to help customers build savings habits. Funds held in Instant Access Savings Accounts are protected through partner bank ClearBank under the Financial Services Compensation Scheme, with protection of up to £120,000 per person.
Beat the Bank of England 3.75% Base rate On Revolut
The new 5% promotional rate is only available to new UK customers and only applies to balances up to £25,000 during the six-month offer period.
After the promotion ends, customers move onto Revolut’s standard savings rates. Users on premium paid plans generally receive higher rates, with Ultra customers currently able to earn up to 4% AER (variable). To qualify for the highest ongoing rates, customers typically need to subscribe to one of Revolut’s paid plans and meet the relevant eligibility requirements.
Do you have to pay tax on the 5% interest you earn from Revolut?
Yes. Revolut is not hidden from HMRC.
As a UK-regulated bank, Revolut is subject to the same reporting obligations as other financial institutions. Interest earned on savings accounts may be reported to HMRC, and customers remain responsible for paying any tax due on savings interest above their Personal Savings Allowance.
For most basic-rate taxpayers, the first £1,000 of savings interest each year is tax-free, while higher-rate taxpayers receive a £500 allowance. Additional-rate taxpayers do not receive a Personal Savings Allowance.
With a headline rate of 5% and instant access to cash, Revolut’s latest offer is likely to attract attention from savers seeking a home for short-term cash while rates remain relatively elevated.
What’s The Catch With Revolut’s 5% Savings Rate?
The headline 5% AER is undoubtedly attractive, but there are a few conditions savers should be aware of.
First, the offer is only available to new Revolut customers. Existing customers cannot benefit from the promotional rate unless they qualify as a new customer under the terms of the offer.
Second, the 5% rate only applies to the first £25,000 saved. Any money above that threshold earns Revolut’s standard savings rate based on the customer’s account plan, which means the effective rate on larger balances will be lower.
Third, the promotion is temporary. The boosted rate expires on 4 December 2026, after which customers will automatically move onto Revolut’s standard savings rates. While these remain competitive, they are currently lower than the promotional 5% rate.
Finally, although the account is instant access and has no minimum deposit requirements, savers should compare the overall package with rival accounts. Some competitors may offer slightly lower rates but without introductory periods or balance caps.
For example, a saver depositing the full £25,000 would earn around £1,250 in interest over a year at 5%, but because the offer only lasts six months, the actual promotional benefit is closer to £625 before tax, assuming rates remain unchanged and the balance stays at £25,000 throughout.
That said, compared with many easy-access accounts currently paying between 4% and 4.75%, Revolut’s offer provides a meaningful short-term boost with relatively few restrictions. The biggest catch isn’t hidden fees or withdrawal penalties—it’s simply that the market-leading rate is limited to new customers, capped at £25,000, and only guaranteed until December.
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