Revolut is fast becoming one of the UK’s most popular money apps. While not a bank, it offers banking services from its full-featured mobile app.
You can use Revolut to send and receive money, shop using physical and virtual debit cards and manage your money using budgeting tools. You can even use Revolut for savings and investments.
If you’re thinking about signing up with digital bank Revolut, you’ll want to know all about its accounts, features and fees.
This includes overdrafts, and whether or not Revolut offers one. This could be helpful for those rare occasions you need access to a little extra cash, without being charged sky-high fees.
In this guide, we’ll run through everything you need to know about overdrafts with Revolut.
We’ll even take a quick look at an alternative, the Wise multi-currency account. This is the perfect account if you live, work or travel internationally, helping you save when sending or spending abroad.
What is an overdraft?
An overdraft lets you spend a little more than your actual current account balance. This is called being ‘overdrawn’.
There are two types of overdraft - arranged and unarranged. An arranged overdraft is agreed with the bank in advance, and you’ll be given a set limit up to which you can spend money.
An unarranged or unauthorised overdraft is where you spend more than your balance without agreeing it with your bank first, or you go over the limit of your arranged overdraft.
In both cases, fees and interest can be charged, but this can vary between banks.
An overdraft can be useful as a temporary solution to avoid bounced payments, for emergencies or to tide you over until your next payday.
Does Revolut offer an overdraft?
Unfortunately, Revolut doesn’t currently offer an overdraft to UK customers. This is likely because it doesn’t yet have a UK banking licence, so it can’t offer the same services as traditional banks.
However, it’s expected that Revolut will be approved for a banking licence soon,¹ so this could change.
The fintech firm does offer some credit solutions to customers in certain countries, including Ireland, the United States, Poland and Romania.² But in most cases, this takes the form of personal loans, pay later services and credit cards.
What happens if I spend more than my Revolut balance?
As Revolut doesn’t currently offer overdraft services, this means you won’t be able to make payments beyond your credit balance.
So if you don’t have enough in your Revolut account, it’s likely that your payment will simply be declined.
Manage your money internationally with Wise
Looking for a cost-effective way to send, spend and receive money internationally? A great alternative to traditional and digital banks is Wise.
The Wise multi-currency accountlets you manage your money in 50 currencies, spend and send worldwide, for low, transparent fees.
You’ll always get the mid-market exchange rate too, whether making a transfer in the Wise app or spending worldwide on the Wise debit card.
Please see the Terms of Use for your region or visit Wise fees & pricing for the most up-to-date information on pricing and fees.
So unfortunately, Revolut doesn’t currently offer an overdraft. But this could potentially change in the future, especially after the fintech firm gets its UK banking licence. So, watch this space.
Sources used:
Sources last checked on date: 18-Apr-2023
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information. This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional. We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
