How to calculate interest on Instant Access Savings
Interest accrues daily, but if your net interest is less than 0.01 in the corresponding savings currency, it won't be paid until the cumulative interest exceeds this amount.
As required by Romanian law, we'll deduct a 10% withholding tax from any interest before it's credited to your Instant Access Savings. Here's an example:
Consider a balance of RON 1,000 with a 2.5% annual interest rate, compounded daily, with a 10% withholding tax applied:
Day 2
- Interest accrued: 1,000*2.50%/365=RON 0.0684932
- Payable interest: 0.06 (remaining amount keeps accruing until it becomes 0.01)
- Tax accrued: 0.06*10%=RON 0.006
- Tax withheld: 0 RON (remaining keeps accruing until it becomes 0.01)
- Interest paid after tax: RON 0.06
- New balance: 1,000+0.06=RON 1,000.06
Day 3
- Interest accrued: 1,000.06 * 2.50%/365 = 0.0684973
- Payable interest: 0.06 + 0.01 = 0.07 (considering interests accrued before)
- Tax accrued: 0.07 * 10% = 0.007
- Tax withheld: 0.01 (considering tax accrued before)
- Net Interest paid: 0.07 - 0.01 = 0.06
- New balance: 1,000.06 + 0.06 = RON 1,000.12
The interest rate on your Instant Access Savings will depend on your plan. To see all applicable rates, visit our Instant Access Savings page on our website.
Changes since the launch of the Revolut Romanian branch
As you may know, Revolut has now opened a local Romanian branch and the process of migrating our customers' accounts to this branch will be a staged roll-out. That's why Instant Access Savings are no longer provided by the Lithuanian entity, but by the Romanian branch of Revolut Bank UAB.
As for your existing Instant Access Savings, the only change will be related to taxation. As required by Lithuanian law, before your account migration we make a 15% tax deduction on any interest before it's credited to you and we report and remit the taxes withheld to the Lithuanian authorities.
However, from your account migration onwards, as required by Romanian law, we'll make a 10% tax deduction on any interest before it's credited to your Instant Access Savings and then, report and remit the taxes withheld to the Romanian tax authorities.