Fintech
Treasury Bill Euphoria Drives Revolut to Exceed €350 Million in Its FlexAccount
The lack of alternatives from banks in Spain has led Revolut’s Flexible Account to reach €350 million invested. In fact, Spain has led the way in the adoption of this product. The entity explains that this “novel” product is focused on those clients who “are looking for attractive returns or who wish to protect their money against inflation with a lower expected risk compared to alternative investments.”
![Revolut](https://born2invest.com/wp-content/uploads/2023/12/sophie-dupau-NEl5d3NUtWM-unsplash-e1702377290489.jpg)
2023 has undoubtedly been the year of Treasury bills. The high yield, which has reached almost 4%, that has been offered over the months has meant that small savers have seen this product as the best alternative.
In addition, traditional banks did not offer products for conservative clients with attractive remuneration. But the neobanks did step up to the plate. In July, Revolut launched its Flexible Accounts in Spain and by December had already exceeded €350 million.
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This product invests in money market funds which, among other things, hold Treasury bills.
Specifically, Revolut’s Flexible Accounts invest in a diversified portfolio of high quality short-term fixed income products, such as treasury bills, deposits, corporate bonds, government bonds… According to the entity, these Money Market Funds, “are low volatility and highly diversified funds.”
To celebrate having reached €350 million in balance, the financial entity has launched a special promotion whereby Revolut customers who recommend the Flexible Account to their friends and acquaintances can earn up to €150 in rewards, while new referred users will get an annual return of up to 3.90% on their Flexible Account until the end of June 2024.
Customers can sign up for this product in euros, dollars and pounds. These last two currencies give a higher remuneration, but if investing in them the client assumes a significant risk, because the price of the euro can change against the other currencies and he could lose money when withdrawing the investment. It is true that he can also earn more money, but it is impossible to anticipate this.
After the promotional period, the remuneration of the FlexAccount will vary depending on the customer’s plan: up to 3.94% for investments in EUR, up to 5.30% for investments in pounds and up to 5.43% for investments in dollars.
In addition, the client can choose between a Standard Account, which is free of charge; the Plus Account, which costs €3.99 per month; the Premium Account, which costs €7.99; and Metal, which costs €13.99. Interest on the FlexAccount is paid daily and compounded monthly, and customers can top up and withdraw funds at any time.
What has led Revolut’s Flexible Account to reach €350 million in Spain
Ignacio Zunzunegui, general manager of growth for Southern Europe at Revolut commented that “the success of this product is due to the fact that, on the one hand, it responds effectively to the needs of consumers at a time when traditional banks are not offering sufficiently attractive savings remuneration”.
The lack of alternatives from banks in Spain has led Revolut’s Flexible Account to reach €350 million invested. In fact, Spain has led the way in the adoption of this product. The entity explains that this “novel” product is focused on those clients who “are looking for attractive returns or who wish to protect their money against inflation with a lower expected risk compared to alternative investments.”
On the other hand, through Flexible Accounts we are also “making available to the general public a product, money market funds, which allows them to get more out of their money and which for years has been reserved for traditional banks and professional operators, being difficult to access for the retail public,” adds Zunzunegui.
Currently available in 22 countries (Spain, France, Germany, Netherlands, Cyprus, Bulgaria, Czech Republic, Greece, Slovenia, Lithuania, Croatia, Malta, Slovakia, Latvia, Luxembourg, Sweden, Denmark, Estonia, Finland, Liechtenstein, Norway and Iceland), Revolut’s Flexible Account has positioned itself in a few months as a smart savings alternative in a context where the ECB increased interest rates for deposits are at 4% and many traditional banks offer more conservative rates for short-term deposits.
Revolut Flexible Accounts offer total flexibility: everyone can make the most of their savings with the ability to add and withdraw funds at any time, and with interest paid daily (which is reinvested monthly if not withdrawn). In addition, there is no minimum or maximum investment limit.
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(Featured image by Sophie Dupau via Unsplash)
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in EL INDEPENDIENTE. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
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