Revolut is a bad choice for many Brits, despite it having some key advantages over other banks.
Revolut, the digital banking app known for its sleek interface and global money transfer capabilities, has grown rapidly in popularity among UK users. It promises low fees, currency exchange perks, and a range of financial tools that appeal to tech-savvy consumers. However, despite its many advantages, Revolut may not be suitable for everyone in the UK. Certain limitations, hidden costs, and regulatory considerations make it less ideal for some customers.
Limited Banking Protections
One of the main concerns for UK users is Revolut’s regulatory status. Unlike traditional banks, which are typically covered by the Financial Services Compensation Scheme (FSCS) protecting deposits up to £85,000, Revolut operates under an e-money license for most of its accounts. This means that, in the event of financial trouble, funds held in standard Revolut accounts are not protected by the FSCS. While Revolut offers safeguarding measures—segregating customer money from company funds—these protections may not provide the same security as a conventional bank account. For risk-averse consumers, this can be a significant downside.
Fees Can Be Hidden
Revolut markets itself as a low-fee alternative to traditional banks, particularly for international payments and currency exchange. While this is true for many transactions, certain fees can be higher than expected. For example, the app imposes a markup on currency exchanges over the weekend and limits the amount of free foreign currency conversion each month depending on the subscription tier. Additionally, ATM withdrawals beyond the free allowance incur fees, which can be substantial if used frequently. For customers who rely heavily on cash or travel abroad often, these hidden costs may offset the perceived savings.
Limited Customer Service
Customer support is another area where Revolut has drawn criticism. While the company offers in-app chat support and AI-powered assistance, UK users have reported delays and difficulties resolving complex issues. Traditional banks provide multiple avenues for assistance, including branch visits and dedicated phone lines, which can be crucial during emergencies or disputes. For individuals who value immediate, in-person support or require help with complex banking matters, Revolut’s digital-first approach may be frustrating.
Restrictions on Certain Transactions
Revolut has specific policies that can affect some customers’ ability to use their account freely. The platform monitors transactions closely for compliance with anti-money laundering rules, sometimes resulting in frozen accounts or blocked transfers. While these measures are standard across financial institutions, Revolut’s automated systems have occasionally flagged legitimate transactions, causing inconvenience for account holders. Furthermore, certain financial products, such as overdrafts and extensive loan offerings, are limited compared to traditional banks, which can restrict flexibility for users who need a broader suite of banking services.
Premium Subscriptions Can Be Costly
Revolut offers multiple account tiers, including Standard, Plus, Premium, and Metal. While the Standard account is free, many of the features that make Revolut attractive—higher foreign exchange limits, travel insurance, and concierge services—require a paid subscription. For some UK users, the monthly fees for Premium or Metal accounts can outweigh the benefits, especially if they do not frequently use travel perks or high-volume currency exchanges. In practice, this means that users seeking the full Revolut experience may end up paying more than they would with a traditional bank that provides similar services for free.
Impact on Credit and Loans
Unlike traditional banks, Revolut does not offer extensive lending products. This limitation affects customers who rely on credit cards, personal loans, or mortgages. Revolut’s credit offerings are limited, and building a credit history through the app is not always possible in the same way as with conventional banks. For younger users or those trying to improve their credit rating, this can be a disadvantage. Traditional banks provide a more comprehensive framework for borrowing and credit assessment, which may be essential for long-term financial planning.
Cash Dependency
Although Revolut is convenient for digital transactions, it is less suited for those who rely on cash. ATM withdrawals are capped and can incur fees, and some businesses—particularly in rural or smaller UK towns—may not accept card payments. This limitation can make Revolut impractical for users who need frequent access to cash or conduct transactions in cash-heavy environments.
Potential Technical Glitches
Being a digital-only platform, Revolut is also susceptible to technical problems. Users have occasionally experienced app outages, transaction delays, or account access issues. While these events are relatively rare, they can be disruptive, especially if a user relies on Revolut for everyday payments or international travel. Traditional banks, with their mix of digital and in-person services, often offer a more resilient safety net for critical transactions.
Is Revolut Bad for All Brits?
Revolut provides a compelling alternative to traditional banks with its low fees, currency exchange benefits, and modern financial tools. However, it is not a one-size-fits-all solution for UK consumers. Limited banking protections, hidden fees, restricted services, and potential technical issues mean that certain customers may find Revolut unsuitable for their needs.
For risk-averse users, those heavily reliant on cash, or individuals requiring robust lending and credit options, conventional banks may offer a safer and more comprehensive financial experience. While Revolut excels as a digital banking platform for tech-savvy users and international travelers, some Brits should carefully evaluate their priorities before relying on it as their primary bank.
