Summary:
Revolut has launched a stocks and shares ISA, enabling its 11 million UK customers to invest in ETFs (exchange-traded funds) directly through its app. This move aims to simplify investing by integrating tax-efficient wealth-building tools into everyday banking. Users can invest between £1 and £20,000 annually, with options from providers like Vanguard and BlackRock. The initiative aligns with broader efforts to encourage retail investing in the UK, including potential policy changes from Chancellor Rachel Reeves.
What This Means for You:
- Simplified Investing: Manage investments alongside daily banking in one app, reducing platform fragmentation.
- Tax Efficiency: Maximize returns with a tax-free ISA wrapper, shielding gains from capital gains and dividend taxes.
- Low-Cost Diversification: Access ETFs spanning sectors and geographies with minimal fees compared to traditional funds.
- Watch for Transfers: If switching ISAs, follow HMRC protocols to avoid losing tax benefits.
Original Post:
Revolut customers will now be able to invest in exchange-traded-funds (ETFs) directly through the bank’s app as the fintech launches its first stocks and shares ISA.
The ISA will allow the bank’s 11 million UK customers to invest between £1 and £20,000 into the easy access tax-free wrapper.
As well as ETF options from Vanguard and BlackRock, users will also have access to other ETF providers via the Revolut app.
With diverse offerings, users can invest across various sectors and geographies with the convenience that comes with ETFs.
Yana Skrebenkova, CEO of wealth and trading UK at Revolut, said the introduction of the stocks and shares ISA was part of an effort by the bank to “break down the barriers” that stop Brits from investing.
She added that the ISA offering will “give our UK customers access to more low-cost investment tools alongside their day-to-day spending, without navigating multiple platforms.”
When will the Revolut ISA be available?
The Revolut stocks and shares ISA will be available within a matter of weeks – and those with an ISA elsewhere, can also transfer their ISA in.
If you are considering an ISA transfer, be sure to let your providers know and follow the correct procedure or you could lose the tax shield.
Revolut said launching its stocks and shares ISA was part of a wider drive to help normalise investing and help customers build long term wealth.
This rhetoric is similar to that of Rachel Reeves in recent months who has said she wants to build a “culture of investing” in Britain.
To achieve this, the chancellor is expected to announce a cut to the cash ISA limit at her Mansion House address on 15 July in an attempt to direct more money into the stock market via the stocks and shares ISA.
How does Revolut’s stocks and shares ISA compare?
By allowing customers to invest in stocks and shares from their banking app, Revolut will compete with fellow digital bank Monzo, which also launched an ETF offering earlier this year.
Monzo’s currently has 11 funds managed by BlackRock on offer, plus the option to ‘Build your own’ ETF.
While you can also have a stocks and shares ISA with a number of platforms, having one attached to your banking app could make it easier to start investing and manage your money.
Extra Information:
UK Government ISA Guidelines – Official rules on ISA allowances and transfers.
Vanguard UK – Compare Revolut’s ETF options with direct provider offerings.
People Also Ask About:
- Are Revolut’s ETFs passive or actively managed? Most are passive index-tracking funds, mirroring benchmarks like the S&P 500.
- What’s the minimum Revolut ISA investment? As low as £1, making it accessible for beginners.
- Can I hold crypto in a Revolut ISA? No – UK ISAs currently exclude cryptocurrencies.
- How do Revolut’s fees compare to traditional brokers? Typically lower (0.1%-0.3%), but check for hidden trading costs.
Expert Opinion:
“Revolut’s move signals a shift toward embedded investing, where banking and wealth management converge,” says financial analyst Liam Parker. “However, users should assess if the limited ETF selection meets long-term goals compared to full-service platforms.”
Key Terms:
- Stocks and shares ISA tax benefits
- Low-cost ETF investing UK
- Revolut vs Monzo ETF comparison
- How to transfer an ISA to Revolut
- Best fintech investment apps 2024
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