Revolut has grown from a travel card startup into a global financial "super app" with over 30 million customers. With features ranging from stock trading to crypto exchanges and multi-currency accounts, it is a powerhouse.
However, rapid growth often raises questions about stability and security. Is your money actually safe with Revolut? This review cuts through the marketing noise to analyze the safety protocols, regulatory status, and operational risks associated with using this digital banking giant.
Understanding Revolut’s Regulatory Status
The most confusing aspect for users is whether Revolut is actually a "bank." The answer depends entirely on where you live. This distinction is critical because it dictates how your deposits are protected in the event of insolvency.
1. The European Union (Revolut Bank UAB)
In the EEA (European Economic Area), Revolut holds a full banking license granted by the Bank of Lithuania.
Protection: Deposits are insured up to €100,000 by the Lithuanian State Company for Deposit and Investment Insurance.
Verdict: In the EU, it is as safe as a traditional bank.
2. The United Kingdom
In the UK, Revolut operates as an Electronic Money Institution (EMI), regulated by the FCA (Financial Conduct Authority). It does not yet hold a full UK banking license, though the application is in advanced stages.
Protection: Your money is "safeguarded." This means Revolut cannot lend your money to others. It is kept in segregated accounts at top-tier banks.
Risk: If the segregated banks fail, or if the safeguarding process fails, you are not covered by the FSCS (Financial Services Compensation Scheme) up to £85,000.
3. The United States
In the US, Revolut is not a bank itself but partners with Metropolitan Commercial Bank.
Protection: Because of this partnership, funds are FDIC insured up to $250,000.
App Security Features: Where Revolut Shines
While regulatory status varies, Revolut’s technical security is arguably superior to many legacy banks. They have introduced features that give users granular control over their card security.
Disposable Virtual Cards
This is a standout feature for online shopping safety. You can generate a virtual card for a single transaction. Once the payment goes through, the card details are instantly destroyed and replaced.
Benefit: If a shady website tries to steal your card info, the numbers they stole are already useless.
Location-Based Security
The app can track your phone’s location. If a transaction is attempted from a location different from your phone’s GPS coordinates, Revolut can automatically block it to prevent fraud.
Granular Card Controls
You can instantly toggle specific functions on or off within the app:
Disable contactless payments.
Disable online transactions.
Disable ATM withdrawals.
Freeze/Unfreeze the entire card instantly.
The Problem with Algorithmic Compliance
No review is neutral without addressing the complaints. The most significant criticism regarding Revolut’s safety isn't about hackers, but about their own compliance algorithms.
Account Freezes
Revolut uses sensitive automated systems to detect money laundering (AML) and fraud.
The Issue: legitimate users sometimes get caught in this net. If the system flags a transaction, your account can be "frozen" temporarily.
The Consequence: During a freeze, you cannot access your funds.
Customer Support: Users often report that resolving these freezes can be frustrating, with chat support sometimes relying on scripted responses.
While this proves they take security regulations seriously, it is a significant inconvenience if you rely on Revolut as your primary account.
Is Revolut Safe for Large Sums?
This is the ultimate question. Should you keep your life savings in Revolut?
The Safe Use Case
Revolut is excellent for:
Travel spending: Excellent exchange rates.
Daily expenses: Great budgeting tools.
Online shopping: Disposable cards prevent theft.
Small investments: Buying fractional shares or crypto.
The Riskier Use Case
Storing a house deposit or your entire emergency fund in Revolut (especially outside the EU/US) carries a different risk profile. Without full banking licenses in regions like the UK or Australia, you lack the absolute guarantee of government-backed deposit insurance schemes like FSCS.
Comparison with Traditional Banks
Feature | Traditional Bank | Revolut |
|---|---|---|
Physical Branches | Yes | No |
Deposit Insurance | Almost always (FSCS/FDIC) | Varies by region (EU/US Yes, UK No) |
Fraud Prevention | Slower, reactive | Proactive, user-controlled |
Card Control | Often requires a phone call | Instant via App |
Support | In-person or Phone | In-app Chat (mainly) |
Conclusion
Is Revolut safe? Yes, strictly speaking. Their technical infrastructure is robust, and they adhere to strict financial regulations globally. The "Disposable Virtual Card" feature alone makes it safer for online commerce than almost any traditional bank card.
However, the safety of your access to funds is a different nuance. Due to aggressive anti-fraud algorithms, there is a slightly higher risk of temporary account lockouts compared to a brick-and-mortar bank where you can walk in and show your ID to a manager.
Recommendation: Use Revolut as a transactional hub. It is perfect for spending, traveling, and exchanging currency. For long-term storage of substantial wealth, a traditional bank with full deposit insurance in your specific jurisdiction remains the most conservative choice.