At the end of August, Revolut launched a new savings product in Belgium —
a non-regulated account with daily interest payouts. As the first of its kind in Belgium, the news made headlines, and LinkedIn buzzed with speculation: Is this the future of banking in Belgium, or just clever packaging?
At first glance, it feels fresh and exciting. A savings account where your balance ticks upward daily. Visually and psychologically, it’s engaging. Revolut also promotes the
compounding effect of daily payouts, since each day’s interest is calculated on a slightly higher balance, unlike traditional accounts that pay interest quarterly or annually.
But look a little closer, and the added value appears limited. On a Standard Revolut plan with €10,000 saved, your net daily interest is around €0.29 – not even 30 cents. The compounding effect is real but negligible over time. Especially when you consider
that non-regulated accounts like Revolut’s are taxed at 30%, while regulated Belgian savings accounts offer a €1,020 tax exemption and only 15% tax beyond that. For the average saver, that’s a meaningful difference.
Moreover, while the product is new in Belgium, it’s neither new for Revolut nor globally unique. Similar offerings exist in other markets.
So what seems like a breakthrough is, for many, just a new flavor of the same. A bit shinier, a bit faster but not significantly better. It even raises the question: should Revolut aim for deeper innovation, like removing the concept of account types altogether?
I’ve written about this before, cfr. my blog “A bank account – A concept of the past” (https://bankloch.blogspot.com/2020/03/a-bank-account-concept-of-past.html)
for more information on this idea.
So why is this launch so interesting then? Not because of the product itself, but because of the
strategy behind it.
Revolut is clearly trying to position itself as more than a travel card or secondary bank. In Belgium, it’s long been seen as a digital sidekick – perfect for FX and mobile payments, but not where your salary lands or where you go for a mortgage or savings.
But with this launch – and the recent rollout of Belgian IBANs – Revolut is sending a clear message: We’re not just visiting. We’re here to stay.
Belgium is however not an easy market to disrupt. It’s highly conservative, with strong customer loyalty to the Big Four banks. People rarely switch banks. Products like savings accounts are judged on legacy and reputation, not features.
But it’s also a savings-heavy market. Belgians are risk-averse – they save first and invest (cautiously) second. Even marginal interest gains, presented well, can become a foot in the door.
Revolut seems to understand this. By combining a slick interface, daily gratification, and local trust signals like Belgian IBANs, they’re not just testing a feature – they’re testing the path to becoming a primary bank.
And there’s also smart timing at play. Revolut is gearing up for a potential IPO, and metrics like assets under management and daily user engagement matter.
- Daily interest keeps users coming back to the app.
- 800,000+ Belgian users represent a significant mass to activate.
This isn’t just about yield – it’s about stickiness, deposits, trust and visibility in a market that doesn’t change quickly.
Traditional Belgian banks (read the Big Four banks) may not move quickly but they will take note. Likely they won’t copy the daily payout, as it’s costly and offers little real value to their customers. But they will take note and respond in other ways,
e.g.
- Highlight Net Yield and Tax Efficiency
- Emphasize the better net return of regulated saving accounts.
- Create comparison tools showing after-tax interest differences.
- Launch awareness campaigns around tax advantages.
- Rebrand existing products as “quietly better” rather than flashy.
- Reinforce Trust and Security
- Highlight FSMA-regulated deposit protection, unlike Revolut’s Lithuanian scheme.
- Position Belgian banks as safe, stable, and locally anchored.
- Modernize the User Experience
- Improve app dashboards for goal tracking and savings insights.
- Introduce features like savings nudges, weekly updates, and flexible interest summaries.
- Incentivize Loyalty Creatively
- Introduce bonus rates, cashbacks, or interest multipliers.
- Launch “interest holidays” (earn extra interest during a specific month) or one-time boosts for saving behaviors.
- Develop thematic savings accounts(e.g. climate-linked, ethical investing).
The big question is whether Belgian banks will let Revolut become the primary bank for young, mobile-first Belgians.
Because once Revolut holds the savings account, the next logical step is to activate these deposits via credit products. And once they enter that domain – with loans, credit cards, or even mortgages – the disruption becomes much more real.
In the end, this move by Revolut is strategic, not seismic. It’s designed more to change perception than behavior. But the stakes are high and the real test will be whether Revolut can turn curiosity into commitment, while
incumbents modernize without losing their trust advantage.
For more insights, visit my blog at
https://bankloch.blogspot.com
