Revolut Offers 5% Savings Rate as Monzo Opens Credit to More UK Users
Two major UK fintechs made big moves this week: Revolut launched a 5% instant-access savings account, while Monzo introduced a credit card designed for people with poor credit histories.
What happened
Revolut, now operating as a fully licensed UK bank, has launched an instant-access savings account offering 5% AER — available to all new customers regardless of their subscription plan, according to Finextra. The promotional rate is set to run until December 2026. Separately, Monzo has teamed up with non-profit lender Fair4All Finance to introduce a new credit product aimed at people who have struggled to access mainstream credit, Finextra reports. The product works on a secured model, requiring a one-time deposit from the customer.
Why it matters
Both announcements reflect a broader push by UK fintechs to compete directly with traditional banks — not just on convenience and apps, but on the actual financial terms they offer. Revolut's move targets the savings market at a moment when many high-street banks still lag behind the Bank of England's base rate in what they pass on to depositors. Monzo's partnership with Fair4All Finance addresses a persistent gap in the market: millions of people in the UK are effectively locked out of affordable credit because of past financial difficulties, leaving them reliant on high-cost lending.
Impact on personal finance
For anyone keeping cash in a current account or a low-yield savings product, Revolut's 5% AER offer is worth paying attention to — moving idle money to a higher-rate instant-access account can meaningfully boost returns without tying up funds. The promotional nature of the rate (running until December 2026) means it's worth reviewing your options again at year-end. For people with a thin or damaged credit file, Monzo's new card could offer a structured path toward rebuilding creditworthiness, since the secured deposit model limits risk for both sides. As always, it's worth reading the full terms of any new financial product before signing up, including any fees tied to the deposit requirement.
Regional perspective
UK users stand to benefit most directly from both products, as eligibility appears limited to UK residents at this stage. For those in the EU, neither offer is currently available, though the ECB has separately been discussing the future of payments and financial access across Europe — a theme that may shape similar products in the eurozone further down the line.
This article is for informational purposes only and does not constitute investment or financial advice. It was created with AI assistance under human editorial review, drawing on publicly available sources listed below.
Sources
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Revolut launches market-leading 5% AER instant access savings accountFinextra — Latest Headlines ·
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CNB increases the countercyclical capital buffer rate to 1.5%ČNB Press Releases (EN) ·
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Volume of retail trade down by 0.4% in the euro area and by 0.5% in the EUEurostat — News Releases ·
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Piero Cipollone: Europe’s money evolves so people’s freedom to pay remainsECB Press Releases ·
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Monzo partners Fair4All Finance on card for Brits with poor credit scoresFinextra — Latest Headlines ·
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