Revolut is a mobile wallet with excellent exchange rates and is trusted by more than 2.5 million customers. Because money is involved, it is good to know how your savings are secured at Revolut.
Let's clarify the first thing – Revolut is not a bank (yet) but a limited liability company based in London regulated by the Financial Conduct Authority (FCA).
This leads to the first and biggest shortcoming. Deposits are not secured with insurance, even though, if Revolut goes bankrupt, you will not lose your money. Based on the information on the website, your deposits are held separately at Lloyd’s or Barclays banks.
In the case of insolvency you will be able to claim the funds from Lloyds or Barclays, and as websites claims, there will be paid above all the creditors. But if the banks get into the trouble, then the deposits are not secured.
Revolut is working on this issue as they are applying for a bank licence. After the licence is granted, users savings will very likely be protected. Nevertheless, standard banks are currently still safer and thus more suitable to hold a significant amount of money. Revolut has even set limits for deposits and if you exceed it you need to provide the source of income.
It is necessary to keep in mind that the service was designed for a different use. The app gives users excellent exchange rates and an extra layer of safety for online payments, with the possibility of virtual payment cards, disposable cards and the possibility to easily block Revolut cards. So by using Revolut as a bank savings account, you are losing some the advantages (e.g. bank insurance).
Revolut is a mobile-first service built by digital natives, it is obvious that they understand the needs of a customer and the fact that we are increasingly paying all over the world in different currencies. For that scenarios, it is very hard to find a comparable service.