4 ms·

Are deposits at Revolut government-insured like deposits at a regular bank are? If not, what happens if Revolut goes out of business?

fasicle 6y ago
"If you choose to open a full current account with Revolut Bank in the future, any funds you deposit will be protected up to €100,000 under the European Deposit Insurance Scheme (EDIS)." https://blog.revolut.com/we-got-a-banking-licence/ https://blog.revolut.com/we-got-a-banking-licence/
- codethief 6y ago
  …until the UK leaves the EU, I suppose?
- xorcist 6y ago
  Despite it being (2018) the "in the future" part still holds. Not sure why, but since customer acquisition doesn't seem to be limited by it, it's probably not their top priority.
jamesfmilne 6y ago
https://www.fscs.org.uk/what-we-cover/banks-building-societies/ https://www.fscs.org.uk/what-we-cover/banks-building-societi... You are protected up to £85k per bank.
- ccjnsn 6y ago
  This is incorrect see: https://www.fscs.org.uk/check-your-money-is-protected/ https://www.fscs.org.uk/check-your-money-is-protected/ Type in revolut. The money is ring fenced usually in a too big to fail bank. Edit: Though they have a banking licence in Lithuania and may be insured there?
- smnrchrds 6y ago
  Their "Protection Checker" has this to say about Revolut: Revolut Ltd (FRN:900562) ... None of your money is protected by FSCS https://www.fscs.org.uk/check-your-money-is-protected/ https://www.fscs.org.uk/check-your-money-is-protected/
- jamesfmilne 6y ago
  Eek, I stand corrected! I had wrongly assumed that a company with a banking licence in the UK was covered by FSCS. And of course, on further inspection, Revolut does _not_ have a UK banking licence. I had wrongly assumed this, given they were advertising their banking services on the London Underground for months (back when I was taking the tube to work). https://www.bbc.co.uk/news/business-47168860 https://www.bbc.co.uk/news/business-47168860 https://www.thetimes.co.uk/article/nikolay-storonskys-revolut-to-seek-uk-banking-licence-xlrhjxcv0#:~:text=Revolut%20is%20preparing%20to%20apply,can%20rake%20in%20more%20deposits.&text=Revolut%20also%20relies%20on%20a,loans%2C%20helping%20to%20boost%20returns https://www.thetimes.co.uk/article/nikolay-storonskys-revolu....
Youden 6y ago
If you're resident in Lithuania and have switched to their bank account, yes, otherwise no. Revolut has an EU banking license issued by Lithuania [0] but only offers accounts covered by the guarantee in Lithuania [1]. If you are resident elsewhere, you are not protected. You should think of Revolut and Transferwise as being more like PayPal than a bank. [0]: https://blog.revolut.com/we-got-a-banking-licence/ https://blog.revolut.com/we-got-a-banking-licence/ [1]: https://blog.revolut.com/revolut-bank-launches-in-lithuania/ https://blog.revolut.com/revolut-bank-launches-in-lithuania/

fasicle 6y ago

"If you choose to open a full current account with Revolut Bank in the future, any funds you deposit will be protected up to €100,000 under the European Deposit Insurance Scheme (EDIS)." https://blog.revolut.com/we-got-a-banking-licence/ https://blog.revolut.com/we-got-a-banking-licence/

codethief 6y ago
…until the UK leaves the EU, I suppose?
xorcist 6y ago
Despite it being (2018) the "in the future" part still holds. Not sure why, but since customer acquisition doesn't seem to be limited by it, it's probably not their top priority.

jamesfmilne 6y ago

https://www.fscs.org.uk/what-we-cover/banks-building-societies/ https://www.fscs.org.uk/what-we-cover/banks-building-societi... You are protected up to £85k per bank.

ccjnsn 6y ago
This is incorrect see: https://www.fscs.org.uk/check-your-money-is-protected/ https://www.fscs.org.uk/check-your-money-is-protected/ Type in revolut. The money is ring fenced usually in a too big to fail bank. Edit: Though they have a banking licence in Lithuania and may be insured there?
smnrchrds 6y ago
Their "Protection Checker" has this to say about Revolut: Revolut Ltd (FRN:900562) ... None of your money is protected by FSCS https://www.fscs.org.uk/check-your-money-is-protected/ https://www.fscs.org.uk/check-your-money-is-protected/
jamesfmilne 6y ago
Eek, I stand corrected! I had wrongly assumed that a company with a banking licence in the UK was covered by FSCS. And of course, on further inspection, Revolut does _not_ have a UK banking licence. I had wrongly assumed this, given they were advertising their banking services on the London Underground for months (back when I was taking the tube to work). https://www.bbc.co.uk/news/business-47168860 https://www.bbc.co.uk/news/business-47168860 https://www.thetimes.co.uk/article/nikolay-storonskys-revolut-to-seek-uk-banking-licence-xlrhjxcv0#:~:text=Revolut%20is%20preparing%20to%20apply,can%20rake%20in%20more%20deposits.&text=Revolut%20also%20relies%20on%20a,loans%2C%20helping%20to%20boost%20returns https://www.thetimes.co.uk/article/nikolay-storonskys-revolu....

Youden 6y ago

If you're resident in Lithuania and have switched to their bank account, yes, otherwise no. Revolut has an EU banking license issued by Lithuania [0] but only offers accounts covered by the guarantee in Lithuania [1]. If you are resident elsewhere, you are not protected. You should think of Revolut and Transferwise as being more like PayPal than a bank. [0]: https://blog.revolut.com/we-got-a-banking-licence/ https://blog.revolut.com/we-got-a-banking-licence/ [1]: https://blog.revolut.com/revolut-bank-launches-in-lithuania/ https://blog.revolut.com/revolut-bank-launches-in-lithuania/