Revolut, a closely held fintech, introduced a high-yield savings account for U.S. customers, offering an annual percentage yield as high as 5.50% for customers signed up for its most elite tier, the company said on Monday.
The high-yield account puts the fintech in direct competition with traditional banks like Capital One Financial (NYSE:COF) and Goldman Sachs (NYSE:GS), which also have high-yield savings accounts. For example, Capital One’s high-yield offering provides 3.50% APY, and Goldman’s Marcus on-line savings account boasts a 3.65% APY, according to their websites.
Revolut’s standard plan customers, who don’t pay a membership fee, get 4.00% APY for balances on a High Yield account and 3.25% for balances in other savings accounts. Premium plan users reap 4.50% APY in the High Yield account, and 3.35% for other savings accounts. Metal plan customers are offered 5.50% APY in the high yield account and 4.00% APY in other savings accounts.
Only one high-yield account per customer is allowed and is limited to US$10K in user initiated deposits. The maximum combined balance of all savings accounts is $250,000 per user, the company said.
Plan fees and cancellation fees apply to Premium and Metal plans, Revolut said. Savings Account services provided by Cross River Bank.
Capital One (NYSE:COF) stock fell 1.1%, and Goldman Sachs (NYSE:GS) slipped 0.4% in Monday morning trading.