Now that Revolut is suggesting we use it as our primary bank account...


#1

In the Revolut app it states in the GBP top up section:

“You can use this account as your primary bank account to receive salary and make payments”

  1. Are our deposits protected by the Prudential Regulation Authority (PRA) scheme or the Depositor Protection Guarantees? Any other protection schemes?

  2. If not then what assurances are there for our financial protection?

  3. If, for the sake of argument, that ERNIE (UK Premium Bonds) give me £1 million pounds next month and I have Revolut listed as my nominated bank account then would the money find it’s way into my Revolut account and how many of your rules would I be breaking by having the money transferred into the account?

  4. Now that we have individual sort code and account numbers will newly issued Revolut cards still have “Prepaid” stamped on them or will they become real bank cards?


#2

Hi @richardb,

Just to clarify, client funds are stored under a segregated account at Lloyd’s or Barclays, depending on the type of account you hold. As an FCA authorised institution, your funds are safeguarded as per FCA requirements, the Electronic Money Regulations 2011 and the Payment Services Regulations 2009. In the event of an insolvency, you will be able to claim your funds from this segregated account and your claim will be paid above all other creditors.

Of course you could transfer in £1 million pounds to your Revolut account, however, there is a weekly limit of 125K. You can find more info here: https://revolut.com/modulr-account-terms

Regarding the Revolut card, nothing has changed, and it’s still a prepaid card.

Please let me know if you have further enquiry.

Best,

Andreas K.


Usage scenario
#3

Hi AndreasK,

I am also interested in understanding the guarantees offered for Revolut Bank accounts.

From your reply I cannot understand whether my Revolut bank account is protected by the FSCS Deposit Guarantee Scheme. This scheme gives a UK government guarantee of deposits of up to £85,000 per person.

Can you please confirm?

I also checked at the FSCS website and Revolut is not listed. (see here)

Thank you for your help,
Adamos


#4

I would love to use Revolut as a primary bank account, but in addition to lack of FSCS coverage, it’s missing a few crucial features at the moment.

Expect it to be covered in the future.


#5

From the FAQ’s

Is my money safe?

The safe and secure transaction of currency is central to Revolut’s mission and philosophy. Revolut does not transact, take or keep any money from customers directly. All your money is held in ring-fenced client accounts at Barclays. That means if anything happens to Paysafe Financial Services or Revolut, your money is still safe.


#6

Hi Adamos.

Thank you for contacting us. Let me clarify, we do not offer bank account, as Revolut is not a bank. However, we do offer UK current accounts.

@badskittler is right “The safe and secure transaction of currency is central to Revolut’s mission and philosophy. Revolut does not transact, take or keep any money from customers directly. All your money is held in ring-fenced client accounts at Barclays. That means if anything happens to Paysafe Financial Services or Revolut, your money is still safe.”

Revolut is authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011 for the issuing of electronic money and payment instruments with the reference number 900562.


#7

So, just to be clear. Let’s make an hypothesis: tomorrow they shut down Revolut for any given reason.
My account money are protected by the FCA because of EMR2011. What should I do? How do I prove how much money I had, etc?


#8

Given how it’s ringfenced, you should be getting 1:1 from the partner bank (Currently Barclays, I believe.) that is holding your money in a segregated customer account.


#9

Hi AndreasK,

You still have not confirmed whether or not Revolut is protected by the FSCS Deposit Guarantee Scheme, as originally queried by Adamos.

Please could you confirm whether or not the FDGS applies?

Kind regards,

Louis


#10

We’re not protected by the FSCS as we’re an E-Money Institution. Clients funds are safeguarded pursuant to safeguarding provisions of the Payment Services Regulations.

However, we’ve recently applied for banking license, which means clients’s funds will be protected by FSCS.


#11

Hi, apologies if I’m being obtuse, but the thread is still a tad unclear to me. I understand the FSCS coverage for monies held at Lloyds or Barclays and that e-wallets are not covered, but I don’t understand what is held by whom and when.
Can you confirm/correct the following scenario:

  1. I transfer 500 GBP funds from my bank account- outcome: money held in client ring fenced account, say Lloyds (and protected)
  2. I buy 250 EUR and 200 BTC- outcome: residual 50 GBP at Lloyds (protected), 250 EUR and 200 BTC in e-wallet (unprotected)… (All GBP equivalent values) .
  3. I sell 250 EUR - outcome: 300 GBP at Lloyds (protected), 200 BTC in e-wallet (unprotected)
    … Or are all funds held in the e-wallet once transactions have been made and need to be withdrawn to be protected?
    Thanks in advance

#12

Did you ever find out the answer to this?