Whether you're going away for a week or a few months, you'll need to know how to handle your finances overseas.
Using your UK bank account or debit card abroad is likely to cost you a lot of money in charges so a more adaptable option, such as an account specifically for global use, may be necessary.
Revolut, an online money managing service, established in the United Kingdom, is one possibility. It works like a current account, complete with a debit card, but is tailored to the needs of travellers. But should you put your money in Revolut if you're going abroad?
In this guide we will consider the fees and exchange rates, the protections in place for your money, as well as the accepted currencies and countries.
Let's get into it.
Fast summary
- Revolut has a prepaid Visa card that can be used both in the United Kingdom and internationally.
- It provides competitive exchange rates on weekdays but charges a premium when the market is closed (on the weekends, for example).
- The ‘standard' plan is free but has limits on how much may be spent without incurring fees while travelling internationally.
- The number of monthly free ATM withdrawals is capped across all Revolut plans (including premium plans).
- Although Trustpilot gives it 4.3 out of 5 stars (which is excellent), and it was recently awarded a UK banking licence, there is no protection from the Financial Services Compensation Scheme (FSCS).
Comparing Revolut, Monzo, and Starling Bank
Revolut | Monzo | Starling Bank | |
Licensed UK bank account | ✔️ | ✔️ | ✔️ |
FSCS Coverage | ❌ | ✔️ | ✔️ |
Personal Accs. | ✔️ | ✔️ | ✔️ |
Business Accs. | ✔️ | ✔️ | ✔️ |
Standing Orders | ✔️ | ✔️ | ✔️ |
Direct Debiting | ✔️ | ✔️ | ✔️ |
Overdraft | ❌ | ✔️ | ✔️ |
Personal Borrowing | ❌ | ✔️ | ❌ |
Spending management | ✔️ | ✔️ | ✔️ |
Free international transactions | As much as £1,000 each month or free | Free | Free |
Withdrawals from foreign banks without fees | Zero monthly fee up to £200 | Zero monthly fee up to £200 | Free |
Interest accrued on available-for-use funds | ❌ | ❌ | ✔️ |
Rate of exchange | Mastercard | Interbanking | Interbanking |
Revolut Premium and Metal plan travel benefits
Revolut's Premium and Metal plans cost £6.99 and £12.99 a month, respectively, and offer some useful extras that can be put to good use on the road. If the extra perks are something you would use – either of these plans could be worth looking into.
- Cash back when you book a hotel
- Health coverage when travelling
- Insurance when flying
- Private liability coverage
- Snow sports coverage
- Loss, damage, or delay of luggage
- Access to a premium airport lounge at no or little cost.
What is Revolut?
Revolut is one of the most well-known money providers around and it offers a range of different services including a current account, a debit card, and accounts for trading on the stock market. However, as its services are exclusively digital, it lacks traditional bank branches.
It's not a bank, therefore it doesn't provide the same level of protection that a UK bank account provides under the Financial Services Compensation Scheme (FSCS). This protects up to £85,000 of customer cash, if a bank were to go bust. However, it has recently been granted a banking licence and it is regulated under the Financial Conduct Authority (FCA).
The monthly plans offered by Revolut are flexible and there are several to choose from. The bare-bones Standard plan is free and includes a card and some useful extras. Then there's a premium tier with progressively more features and a higher monthly charge (up to £45 per month). Increased spending limits, foreign transfer discounts, and supplementary items like insurance are just a few examples.
Bit of context
Revolut, which defines itself as a “digital money manager alternative”, is just one of several startups revolutionising customers' relationships with their money accounts. Revolut was created in July 2015 by Nikolay Storonsky, a former trader who worked at Lehman Brothers and Credit Suisse, and Vlad Yatsenko, who previously designed financial systems for investment banks.
The Revolut prepaid card and accompanying mobile app were originally designed to facilitate low-cost currency exchange for international visitors. It originated as a result of Storonsky's dissatisfaction with the options available on the market at the time.
The company's offerings have grown considerably since then. More than 25 million consumers use the service worldwide, and the fintech firm is constantly expanding its offering.
Can I use Revolut while I travel?
Yes, Revolut works abroad and is straightforward, in fact it was designed specifically for use overseas.
If you have an internet connection, you can use the Revolut mobile app and your account anywhere in the world. You can make and receive payments, see your account balance, and even switch currencies using this feature.
Your Revolut card may be used to make purchases and withdraw cash from ATMs in over 140 different currencies. Basically every place that accepts Mastercard or Visa.
How to make foreign purchases with your Revolut card
Because it supports more than 30 different currencies, Revolut is a great option when travelling. When making purchases with your Revolut card in the local currency, you won't be subject to the standard international transaction fees or instant currency conversions.
Users can also make free withdrawals from any ‘Allpoint' network ATM worldwide, up to a daily withdrawal limit that varies by account type. However, third-party ATM fees may still apply.
To benefit from these privileges, you will first need to pay money to your Revolut account. The procedure was simple in our experience:
- Select “+ Add Money” in the app
- Put in the amount you want to add
- Select “Add card”
- Simply key in your card information
- Add funds safely.
The Revolut card allows you to make purchases and withdrawal funds abroad in the same way as you would do in the UK.
There are, nevertheless, a few essentials you should know about converting currencies. In the Revolut app, you are able to do a currency exchange between 29 different options. This allows you to exchange some funds for the local currency before your trip.
If you're planning a vacation to France, for instance, you may exchange £500 into EUR in your Revolut account in advance of your departure. If you do this, you'll have Euros available on your card for purchases or withdrawals.
The primary advantage is that the exchange rate will be shown before you make the transaction, and you may monitor it to ensure you get the best possible deal. You could avoid making a potentially costly currency exchange when you make your purchase.
Using the Revolut card for purchases
The actual Revolut card can be used for purchases in both your base currency and other supported currencies.
When you load funds onto the card, you may convert them to the currency of your choosing (for example, U.S. dollars), locking in the conversion rate at the time.
Or you can leave it as a sterling cash balance, and Revolut will convert your foreign purchases to sterling at the market currency rate at the time of the transaction. This will only occur if you choose ‘without conversion' when requested to select a currency type while paying with your Revolut card. If you choose “with conversion,” the store will do the conversion using the exchange rate they have determined for the transaction.
While Revolut's exchange rates are cheap, there are certain exceptions, such as fees for weekend currency conversions and conversions of rare or exotic currencies.
You can only spend so much in a given foreign currency using your Revolut card. If your monthly total is more than this, you may be subject to additional fees. We'll take a closer look at this later.
Using your Revolut card at an ATM
With a Revolut card, you may use an ATM to withdraw local cash. There is no price for this service, however you should be aware that many providers impose their own fees for.
The maximum amount that may be withdrawn from an ATM is capped, much as the maximum amount that can be spent. Keep in mind that if you want to avoid the operator's disadvantageous exchange rate, you must choose “without conversion” at the ATM.
Always choose to be charged in the currency of the nation you're currently in. Revolut will handle everything else.
What exchange rates and fees to expect abroad
Foreign transactions made with a Revolut card will incur the following fees and currency rates:
| Transaction | Fee |
| Monday to Friday Foreign Exchange | Free |
| Weekends are free of charge currency exchanges. | 1% |
| Withdrawals from ATMs up to the monthly limit (£200-£800) | 2% |
| Having a monthly foreign currency outlay of above £1000 | Premium and Metal plans are free, while Standard plans cost 1% and Plus plans cost 0.5%. |
The weekend currency conversion cost of 1% is particularly noteworthy among these other fees. During the week, using your Revolut account to make purchases or withdraw funds in a foreign currency does not incur any costs. Which is when many individuals choose to take short vacations to unfamiliar places, sadly.
You should also be careful not to exceed your monthly foreign currency spending limit. Otherwise, a different cost could be charged.
Guide to rates
The currency rates used by Revolut are the mid-market or interbank rates. These are the fairest available, although just a few providers utilise them (Wise being one of them).
Using a third-party service, such as a bank, will result in a higher effective interest rate than the mid-market rate. This is how they generate a profit, yet it causes you to come out worse from the deal. The weekend surcharge that Revolut adds to currency conversions marginally lowers the company's otherwise excellent exchange rate.
Verdict: Using Revolut Abroad
If a store accepts Mastercard or Visa, you can use your Revolut card there, which means you can use it pretty much anywhere.
Revolut also converts your funds at the mid-market exchange rate. This allows you to save money on your trip by avoiding costly markups associated with currency conversion.
By utilising the interbank exchange rate and eliminating the transaction fees of between 2% and 3% paid by most banks and credit card providers, Revolut gives its clients considerable discounts when making purchases overseas.
However, the monthly free ATM withdrawal restrictions might be a hassle, especially if you need to withdraw cash when abroad. If you go over your monthly spending limit on either the free Standard plan or the Plus plan (which costs £2.99 per month), you will be charged a fee of up to 1% of your total purchase amount.
With this increasingly popular challenger app, Revolut also applies a markup to the interbank exchange rate on weekends and holidays, depending on the currency.
💡 Biggest issue: Not a bank
Perhaps the greatest issue of Revolut is that it is not a UK-licensed bank and clients' money is not protected by the FSCS in the primary account. In the interim, you may reduce your risk by not leaving big amounts on your Revolut card but rather topping it up only when necessary.
💡 Biggest alternative: Starling Bank
Starling Bank is an appealing alternative since it offers a current account with all the convenient features you'd expect from an app-only bank, including zero fees for international transactions. As previously indicated, if your monthly spending exceeds £1,000, Revolut's Standard and Plus plans begin imposing a 1% or 0.5% charge on transactions.
Starling allows unlimited free ATM withdrawals per month, and although Starling and Revolut use very identical exchange rates, Starling does not add a markup on the weekends like Revolut. When you apply for a Starling account, a soft search will be performed on your credit record since it is a current account.
Starling is also protected under the Financial Services Compensation Scheme (FSCS), which Revolut it not.
If you're merely looking for a prepaid card to use abroad, Revolut is a fantastic option. Prepaid cards are favoured by some due to their perceived safety. However, Starling Bank's current account is likely to be more appealing if your trip is longer and your ATM use and expenditure are expected to increase.
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