How Much Does Revolut Charge for Exchange?

Revolut is a popular financial technology company that offers a range of banking services, including currency exchange. With millions of users globally, Revolut has become known for its competitive exchange rates and transparent fee structures. In this article, we will delve into how much Revolut charges for currency exchange, the factors that affect these charges, and how they compare to traditional banks and other financial services.

Revolut Exchange Rates

One of the key features that attract users to Revolut is its access to the interbank exchange rate. This is the rate at which banks trade currencies with each other, often without the markups applied by other financial institutions. Revolut offers this rate during weekdays for most currency exchanges, which is highly beneficial for users who want to get the best possible deal.

However, the situation changes slightly during weekends. Since the foreign exchange market is closed during weekends, Revolut applies a markup to the interbank rate to protect itself from market fluctuations when it reopens. This markup typically ranges between 0.5% to 2% depending on the currency pair and the user’s plan (Standard, Plus, Premium, or Metal).

Exchange Fees Based on Plan

Revolut offers different plans, each with its own fee structure:

1. Standard Plan:

   • Weekdays: Free up to £1,000 per month, after which a 0.5% fee is applied.
   • Weekends: A markup of 0.5% to 2% on the exchange rate.

2. Plus Plan:

   • Weekdays: Free up to £1,000 per month, similar to the Standard Plan.
   • Weekends: A reduced markup compared to the Standard Plan, typically around 0.5% to 1.5%.

3. Premium Plan:

   • Weekdays: Unlimited free exchanges at the interbank rate.
   • Weekends: A smaller markup, generally 0.5% to 1%.

4. Metal Plan:

   • Weekdays: Unlimited free exchanges at the interbank rate.
   • Weekends: The lowest markup, usually 0.5% or less.

Hidden Fees and Charges

Revolut is transparent about its fees, but there are some additional charges that users should be aware of:

• Cross-Border Transactions: For some currencies, especially less common ones, Revolut may charge a cross-border fee. This is often a small percentage of the transaction amount but is clearly disclosed before the exchange is made.
• ATM Withdrawals: While not directly related to currency exchange, it's important to note that Revolut offers free ATM withdrawals up to a certain limit (depending on the plan). Beyond that limit, a fee of 2% is typically applied.

Comparison with Traditional Banks

Traditional banks often apply a much higher markup to currency exchanges, ranging from 2% to 5% on top of the interbank rate. Additionally, banks may charge a flat fee for each transaction, making Revolut a more cost-effective option for frequent travelers and those needing to exchange currencies regularly.

How to Maximize Savings with Revolut

To get the most out of Revolut's currency exchange services, users should:

1. Exchange on Weekdays: Avoid exchanging currencies during weekends to benefit from the interbank rate without the additional markup.
2. Monitor Exchange Limits: Be aware of the monthly exchange limits based on your plan to avoid unexpected fees.
3. Choose the Right Plan: If you frequently exchange large amounts of money, upgrading to a Premium or Metal plan may save you more in the long run despite the higher monthly fee.

Case Study: A Practical Example

Let’s consider a user exchanging £2,000 to Euros. On a weekday, the exchange would be at the interbank rate with no fees for Premium and Metal plan users. Standard and Plus plan users would incur a 0.5% fee on the amount above £1,000, translating to a £5 fee on the second £1,000. On a weekend, the markup would apply, potentially increasing the total cost by £10 to £20 depending on the markup percentage.

Plan	Weekday Fee	Weekend Markup	Total Cost (Weekend, £2,000)
Standard	£5	£10-£20	£15-£25
Plus	£5	£7.5-£15	£12.5-£20
Premium	£0	£5-£10	£5-£10
Metal	£0	£2.5-£5	£2.5-£5

Conclusion

Revolut offers highly competitive currency exchange services, especially for those who exchange money frequently. By understanding the fee structure and planning exchanges accordingly, users can save significantly compared to traditional banks. The choice of plan is crucial in maximizing savings, and users should carefully consider their exchange habits when selecting the most appropriate plan.

In summary, Revolut charges minimal fees for currency exchange, especially during weekdays, with only a few considerations needed for weekend transactions. This makes it an excellent option for individuals looking to exchange currencies efficiently and cost-effectively.