Millions of customers will see their account changes from e-money to full current account – but what’s changing in practice?
Revolut has officially become a bank in the UK, giving more protection to its 13 million UK customers and allowing it to offer lots more financial products.
Previously it was an electronic money (e-money) institution – and while things will largely stay the same, there are some important changes to be aware of.
Here we look at what it means for new and existing customers.
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Revolut now has a banking licence
Revolut is now a UK bank and gained its full banking licence in March from the Prudential Regulation Authority (PRA).
It already has a range of accounts for adults and children to open, from a free basic account to paid-for premium accounts which include extras like insurance, subscriptions, data and airport access. It also offers investment, savings and cryptocurrency products.
But now it can now launch current accounts, offer greater protection to customers, and even offer products like loans and mortgages.
It first started in the UK in 2015 and in 2021 it was given a banking licence with restrictions but now it has a full licence, it has changed its name to Revolut Bank UK Ltd and it will be subject the same regulatory rules as other UK banks, as governed by the Financial Conduct Authority (FCA) and the PRA.
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What has changed for Revolut customers?
Up to £120,000 is now protected by the FSCS
One of the biggest changes to customers now that Revolut is a bank is the protection it can offer. Any money kept within an account with the bank will be covered by the Financial Services Compensation Scheme (FSCS).
This covers up to £120,000 per person held with Revolut if the bank went into administration. It is per institution so if you were to have several accounts with Revolut, the overall compensation limit remains at £120,000.
Previously money kept within a Revolut account did have some protection. It was looked after under a process called ‘safeguarding’, which is required by the UK electronic money regulations. This meant money had to be kept in a separate ring-fenced account to protect it in the case of the company going into administration.
New bank accounts
All accounts with Revolut were previously e-money accounts and now it’s a bank these will become UK current accounts. This is a gradual process happening over the next month for existing customers.
There isn’t any change though apart from the name and some services will now be provided by Revolut Bank, instead of Revolut Ltd.
You’ll be told when your account is changing and you should still be able to use your account in exactly the same way. It will happen automatically so existing customers won’t need to do anything.
If you want to switch your current account to a different provider, there are lots of perks available – including up to £200 in cash for new customers at some banks.
Revolut insurance policies
If you have a Revolut travel insurance policy, the policy number will be changed but the terms of the policy remain the same. The new insurance policy numbers will be: Metal plans: UK409992764 and Ultra plans: UK409992765.
Loans, mortgages and more
Now Revolut is a bank, it’s officially allowed to take deposits from customers and hold these. It can also lend money if it chooses to.
While Revolut is yet to confirm which new products it might offer, these could include mortgages, loans and savings products.
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What is staying the same?
Current account details
For existing Revolut customers, there won’t be a change to account numbers. This means your account number, sort code, IBAN or BIC will all stay the same,
The address used for Revolut also won’t change so this can still be used for money transfers.
Revolut joint accounts
All joint accounts with Revolut will be automatically transferred to current accounts. This will happen at the same time current accounts are created and there won’t be any other change to the account.
Each joint account holder will now have protection of up to £120,000 under the FSCS scheme. If either holder wants to opt out of moving to a current account, the account will be closed.
Can I keep my Revolut e-money account?
No, you won’t be able to keep an e-money account with Revolut. All e-money accounts are being automatically transferred to current accounts.
If you don’t want to have a current account with Revolut as a bank, you will need to close your account which you can do via the app.
If you have investment stocks, cryptocurrencies or commodities in your current Revolut account, these can be moved over to your new current account. But you can also transfer them to another provider although fees will apply.
FAQs
Is my money safe if Revolut goes bust?
Yes, up to £120,000 is protected per person if Revolut were to become insolvent and go bust. This protection comes under the Financial Services Compensation Scheme (FSCS).
Is Monzo FSCS protected?
Yes, Monzo has a full UK banking licence and up to £120,000 is also protected per person via the FSCS scheme.
Can HMRC see my Revolut account?
Yes, HMRC can look at your Revolut account as the bank has to comply with UK tax regulations.
Does Revolut support cryptocurrencies?
Revolut does allow customers to hold cryptocurrencies within their accounts. This will remain the same for current accounts now it is officially a UK bank.
