Revolut has risen in popularity as a banking platform over the last few years, yet many people don’t know much about it, its benefits, the drawbacks and things you need to be cautious of, such as Revolut scams. So, we’re here to help answer those questions to help you decide whether this could be the right platform for you!
The Pros
Easy Banking Abroad
One of the main reasons many people get Revolut is because it provides easy banking abroad. There are competitive exchange rates and also there are no foreign transaction fees unlike many other cards and banks. There are also lots of different currencies in the app which is great for international travel.
Free Account
Revolut is also free to use, which is a pro for many people. There are upgrade versions available, however you can access plenty of good benefits without the need to pay extra.
Savings Vaults
Within the Revolut app, you can create Savings Vaults, with different savings pots to help you reach your goals. Whether it’s for a holiday, a birthday present or anything else, you can keep your savings separate from your other money so that it doesn’t get forgotten about.
The Cons
Not A Full Banking Service
Revolut is not technically a bank, but instead is an electronic money institution (EMI) which is regulated by the Financial Conduct Authority (FCA). However, the bank isn’t protected by the Financial Services Compensation Scheme (FSCS), which protects your money should the financial firm fail. As a result, there are cons, such as not offering full banking services like overdrafts or mortgages, which other more established banks are to offer. So, it’s rare that people would have Revolut as their primary bank account for this reason, and also wouldn’t store a large amount of their savings within their Revolut account.
Little To No Scam Protection
Leading on from the previous point, there is little to no scam protection available when you have Revolut. The major banks are all registered with the Lending Standards Board under the Contingent Reimbursement Model Code (CRM code), so if you are involved in a scam, they will be responsible for helping you to get the money back in most circumstances. Revolut is not registered with the CRM code, so if you were to get scammed and lose money through Revolut, they have no obligation to do anything about it. As a result, many scammers will target Revolut users, so being aware of common Revolut scams, as well as general bank scams, and knowing how to avoid them, is absolutely essential.