Top-up amounts will be invested in US dollar money market funds managed by Fidelity International.
Fintech app Revolut has announced Flexible Accounts, its first interest-bearing product in Singapore, offering customers up to 5.21% annual interest (APY) with no minimum balance. This interest is paid daily and can be withdrawn at any time, Revolut says on May 29.
Revolut’s Singapore users are the first to access flexible accounts outside the European Union (EU).
Funds deposited into flexible accounts are invested in a money market fund managed by Fidelity International. Revolut launched this fund in the UK and European Economic Area (EEA) last year and since then assets under management (AUM) have reached £3 billion ($5.14 billion).
Revolut’s paying customers receive a higher APY. Customers on Revolut’s Metal plan who pay $19.99 per month can enjoy up to 5.21% APY. Premium customers who pay $9.99 per month can enjoy up to 5.06% APY. And finally, Standard customers who pay no monthly subscription fee can enjoy up to 4.61% APY.
The annual service fee varies depending on the plan type. Metal plan users are charged 0.30%, Premium plan users are charged 0.45%, and Standard plan users are charged 0.90%.
The service fee, which includes both Revolut’s fee and Fidelity International’s management fee, is calculated daily and automatically deducted from the interest received daily. This ongoing fee is calculated as a percentage of the value of the shares held in the user’s Flexible Account.
From now until July 31, Revolut Singapore is offering all customers a promotional interest rate of up to 5.48% APR. In addition, customers who invest at least US$2,500 ($3,370.26) during the 31-day promotional period will receive a bonus cashback of $25.
Raymond Ng, CEO of Revolut Singapore, said: “With the rising cost of living, stretching your savings and making your money work for you has never been more important. We are excited to offer our customers an easy way to grow their 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 world’s leading fund managers, Fidelity International. Customers also have the peace of mind of being able to withdraw their funds at any time with no restrictions.”
Sabrina Gan, Head of Southeast Asia and Country Head Singapore at Fidelity International, says the digital revolution is transforming the financial system. “We are delighted to partner with Revolut and help them grow their category of investment solutions for investors in Singapore. Through this deal, we can offer Revolut’s customers access to our decades of investment management experience, supported by our global investment platform and research capabilities.”
In the fine print, Revolut says the marketed APY is for the period from December 20, 2023 to May 20 on a per-price basis and is “not an indicator of future performance.” The marketed APY also assumes that distributions are reinvested with applicable fees.
According to Revolut’s website, the marketed APY on US dollar flexible accounts is up to 5.45%, while GBP accounts can earn up to 5.25% APY and Euro accounts can earn up to 3.95%. This is net of fees as of February 20.
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