Fintech app Revolut has announced Flexible Accounts, its first interest-bearing product in Singapore, offering customers up to 5.21% in annual percentage yield (APY) with no minimum sum. This interest is paid daily and available for withdrawal anytime, says Revolut on May 29.
Revolut’s Singapore users are the first to access Flexible Accounts outside the European Union (EU).
Funds that are deposited into Flexible Accounts will be invested into a money market fund managed by Fidelity International. Revolut offered this fund in the UK and European Economic Area (EEA) last year and since then, current assets under management (AUM) has hit GBP3 billion ($5.14 billion).
Revolut’s paying customers will receive higher APY. Customers on Revolut’s Metal plan, who pay $19.99 a month, can enjoy up to 5.21% APY. Premium customers, who pay $9.99 a month, can enjoy up to 5.06% APY. Finally, Standard customers, who do not pay a monthly subscription fee, will receive up to 4.61% APY.
The annual service fee varies depending on the plan type. Users on the Metal plan will be charged 0.30% in fees, while Premium plan users will be charged 0.45% and Standard plan users will be charged 0.90%.
The service fee, which includes both Revolut’s fee and Fidelity International’s management fee, is calculated daily and automatically deducted from the daily interest received. This ongoing charge is calculated as a percentage of the value of the shares held in the user’s Flexible Account.
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From now till July 31, Revolut Singapore is offering a promotional rate of up to 5.48% annual interest for all customers. Additionally, customers who invest a minimum of US$2,500 ($3,370.26) during the campaign period, for a period of 31 days, will receive a bonus cashback of $25.
Raymond Ng, CEO of Revolut Singapore, says: “With the cost of living rising, stretching your savings and making your money work for you has never been more important. We are delighted to offer a simple way to grow our customers' funds and enable them to get the most value from their money through a low-risk, low-volatility money market fund, managed by one of the top global fund managers, Fidelity International. Customers will also have the peace of mind of being able to withdraw their funds at any time, without any restrictions.”
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Sabrina Gan, head of Southeast Asia and country head of Singapore at Fidelity International, says the digital revolution is changing the financial system. “We are excited to work with Revolut and support them in growing their category of investment solutions to investors in Singapore. Through this deal, we will be able to provide Revolut’s customers access to our decades of investment management experience, powered by our global investment platform and research capabilities.”
In fine print, Revolut says the marketed APY were from the period of Dec 20, 2023 to May 20 on single pricing, and are “not indicative of future performance”. The marketed APY also assumes distributions are reinvested with applicable charges.
According to Revolut’s website, its marketed APY on US dollar-denominated Flexible Accounts is up to 5.45%, while GBP-denominated accounts may earn up to 5.25% APY and Euro-denominated accounts up to 3.95%. This is presented net of fees as of Feb 20.
