Revolut is a mobile banking or neobank that offers a number of interesting features compared to regular banking services. It is a company that uses technology to offer you financial services such as a free current account and a card to work with.
What is Revolut?
Revolut has emerged in Spain as a so-called fintech - a company that uses technology to provide financial services and processes. These types of companies are an alternative to traditional banking services, offering you a card to make transactions and a digital account to store your money. However, they tend not to have as many guarantees when it comes to protecting large cash deposits.
These types of mobile banking often have a number of additional advantages over traditional banking due to their flexibility, and for users who just need a small account without a lot of extra features, they can be a good alternative. However, they do have some disadvantages that may make you think twice.
But nowadays, Revolut is already operating as a bank that guarantees protection for deposits up to €100,000. So, the company is now called Revolut Bank and is actually a bank, but is focused on mobile banking with all the advantages and disadvantages that come with it.
How Revolut works?
Revolut operates through its mobile app. It performs the functions of a bank, but its data is not in the offices, and all transactions are done through the mobile app. It is something similar to those mobile banks that large banks have as an alternative, but with a completely independent company that competes with classic banking institutions.
The principle of operation is also similar. When you register, a bank account is created, with which you can make deposits and expenses, deposit your salary or pay your mortgage. The difference is that you do not need to visit a physical bank branch, as the entire process is done electronically.
Once you create an account on the app, you can use it just like any other bank's app. The options are basically the same. In addition, you will be sent a physical debit card so that you can operate it anywhere. The idea here is that you can do this anywhere in the world, regardless of the currency you use.
One of the features of Revolut is that in addition to the free account, it also has other paid accounts with monthly subscriptions, similar to the different plans that other online services may offer. The free version has features like withdrawing up to 200 euros from any ATM with no fees, but there are several other plans that enhance these basic features.
The app also includes a platform to buy and sell stocks and cryptocurrencies in a simple way via mobile, as well as other options such as cash back for purchases or extended time to make refunds. All these benefits are more or less dependent on whether you choose the free or paid option.
Key advantages and disadvantages
Revolut has a number of important advantages that offer flexibility and convenience. For example, it is completely free, online and allows you to handle multiple currencies seamlessly while using your European IBAN. In addition, the app allows you to centralize your stock market and cryptocurrency investments by offering over 25 cryptocurrencies to buy and sell.
The app also offers savings spaces, which are small subaccounts you can open to put money aside for savings, as well as insurance within payment plans - medical or travel insurance against flight delays and baggage. There are also cashback options in the payment plans.
Revolut also has the option of linking accounts for children, where you control their spending and card funds, as well as a deposit guarantee fund of €100,000 thanks to a Lithuanian banking licence.
However, this system also has disadvantages that you should be aware of. The most significant of them is that the bank has no physical branches and all transactions are carried out online, which can make it somewhat difficult to solve problems that arise. Also, the bank does not have its own network of ATMs, which does not allow you to withdraw cash. However, it is possible to withdraw money without commission in any bank, although with some restrictions depending on the type of account.
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