Revolut launches Flexible Accounts in Singapore with up to 5.21% yield

SINGAPORE: Fintech giant Revolut launches Flexible Accounts in Singapore.

This marks the company’s first interest-bearing offering in the country, allowing customers to earn up to 5.21% in annual percentage yield (APY) without any minimum sum. The interest earned is paid daily and available for withdrawal at any time.

The Edge Singapore reported that Singaporean customers are the first outside the European Union (EU) to access Flexible Accounts, showcasing Revolut’s expansion beyond Europe.

Flexible Accounts operates by investing deposited funds into a money market fund managed by Fidelity International, a well-known global fund manager.

This fund has seen significant success in the UK and the European Economic Area (EEA), with assets under management (AUM) reaching GBP3 billion (S$5.14 billion).

Revolut’s paying customers receive higher APY rates based on their subscription plans. Users on the Metal plan, which costs S$19.99 per month, can enjoy an APY of up to 5.21%.

Premium plan users who pay S$9.99 monthly can earn up to 5.06% APY. Standard plan users who do not pay a subscription fee can still earn up to 4.61% APY.

However, it’s important to note that flexible accounts have service fees, including Revolut’s fee and Fidelity International’s management fee. These fees are deducted daily from the interest earned and vary based on the plan type.

Metal plan users face a fee of 0.30%, Premium plan users 0.45%, and Standard plan users 0.90%. Revolut Singapore offers a promotional rate of up to 5.48% annual interest for all customers until July 31.

Additionally, customers who invest a minimum of US$2,500 (S$3,370.26) during the campaign period, lasting 31 days, will receive an S$25 cashback bonus.

According to Revolut’s website, the APY rates for US dollar-denominated accounts are up to 5.45%, GBP-denominated accounts up to 5.25% APY, and Euro-denominated accounts up to 3.95% APY, net of fees as of Feb 20.

Additionally, these rates assume reinvestment of distributions with applicable charges.

Mr Raymond Ng, CEO of Revolut Singapore, emphasises the importance of maximising savings amidst rising living costs. 

He said, “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.”

Ms Sabrina Gan, head of Southeast Asia and Singapore at Fidelity International, expresses excitement about partnering with Revolut to offer investment solutions in Singapore.

She noted, “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.”

While the advertised APY rates seem promising, they are based on single pricing data from the period of Dec 20, 2023, to May 20 and are “not indicative of future performance,” said Revolut. /TISG

Read also: Digital multi-currency accounts & cards for travel spending: BigPay, Instarem Amaze, Revolut , Wise, YouTrip

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