Digital banking platform and global fintech Revolut announced on Wednesday the launch of its first interest-bearing product in Singapore called Flexible Accounts. The new offering allows customers to earn up to 5.21% annual percentage yield (APY) on their savings with no minimum deposit required.
Revolut Launches High-Yield Savings Product in Singapore
Flexible Accounts invest customer deposits into USD-denominated money market funds (MMFs) managed by global asset manager Fidelity International. These low-volatility funds hold a diversified portfolio of short-term debt instruments. Interest is accrued daily and customers have the flexibility to add or withdraw money at any time.
"With the cost of living rising, making your money work for you has never been more important," said Raymond Ng, CEO of Revolut Singapore. "We are delighted to offer a simple way to grow our customers' funds through a low-risk money market fund."
To promote the new product, Revolut is offering a special up to 5.48% APY to all customers until July 31, 2024. Those who invest at least $2,500 for 31 days will also receive a $25 cashback bonus. Under normal conditions, users can expect an APY of up to 4.61% (standard customers), 5.06% APY (premium customers), and 5.21% APY (metal customers).
Success from Other Markets Reaches Singapore
The launch comes as Revolut looks to expand its footprint in the Asia-Pacific region, where the company Landed for the first time in 2018. A year later, it officially launched in Singapore, which now becomes the first market in the region where the UK-based fintech offers this type of savings product. Revolut reports that its similar European offering has attracted over £3 billion in assets under management since launching last year.
"The digital revolution is changing the financial system, and we are excited to work with Revolut to bring this solution to investors in Singapore," said Sabrina Gan, Head of Southeast Asia at Fidelity International, managing the funds.
A recent survey conducted by Revolut in collaboration with research firm YouGov, which included a representative sample of 1,000 Singaporeans aged 18-65+, revealed that MMF investments are more popular among the younger generation. Specifically, 35% of Millennials (born 1981-1996) and 34% of Generation X (born 1965-1980) preferred MMF investments.
On Tuesday, Finance Magnates reported that Revolut announced the expansion of its international transfer feature and introduced 14 new payment methods across nine different African countries. Meanwhile, the company launched Revolut X, a cryptocurrency exchange designed for professional traders.
