How to use Revolut to save money before and after Aliyah

Last Updated on August 20, 2024

This article is for general educational purposes only and should not be viewed as legal, tax, or investment advice. Revolut may not be the right platform for you and we always recommend conducting independent research before making any financial decisions. I do not work for or have any affiliation with Revolut.

Revolut is a mobile app-based bank which allows you to save, spend and exchange currencies worldwide. Founded as a British financial technology company in 2015, Revolut now has millions of customers all over the world, was recently valued at $33 billion, and has ranked in the top 10 of the largest private startups in the world in 2021.

This blog will refer to the “US version” of Revolut but you can find more information about their services in each country, here.

August 2024 Update: The bank of Israel has just issued Revolut an official Israeli banking number (78). This is a big step towards Revolut becoming an alternative to much of what is offered by the Israeli banking system. We will watch to see how Revolut implements their news status and update this guide accordingly.

June 2024 Update: Unfortunately, Revolut US is not opening new accounts at this time until they finish their transition to a new partner bank. I do not believe they have published a timeline yet on and you should look for other solutions in the meantime.

Who is Revolut best for

The individuals most likely to benefit from Revolut are:

• Someone preparing to make Aliyah
• Someone living in Israel with income or savings outside of Israel and an address outside of Israel

If you already live in Israel and have no address outside of Israel you likely won’t be able to open an account and should probably skip this article – just don’t forget to share it first with friends and family who are Aliyah planning.

For those eligible to open an account, Revolut usually comes out cheaper than using another popular alternative – Wise – for monthly transfers.

If you are looking for step-by-step guidance on using Revolut and the other currency transfer apps – get instant access to our new crash course “Mastering Money Transfers to Israel“!

Getting started

It is easy to set up an account and get started for free. To get started, download the Revolut App from the App store on your phone and follow the steps for setting up an account.

Important tip: Do not try to open an account at revolut.com if you plan on using an Israeli phone number. Unfortunately, this can lead to you being added to a waiting list for the Israeli version of Revolut rather than allowing you to open an account today. To avoid this problem, download the Revolut app from app store and open your account using the app rather than a web browser. Once you have your account opened via the app, you should have no problem accessing your account via the web based portal as well.

Transfering money to Revolut

Once your Revolut account is set up and connected to your bank account, transfering money to your Revolut account is easy. To do this, first click on the “add money” button next to your USD account details in the Revolut app. Then, in the “how to add money screen”, scroll down and click on “regular bank transfer” that will give you the bank details you need. Once you have those bank details, log on to the bank account you are transferring money out of and look for the option to “add or link an external account”. Some banks have a process for connecting accounts instantly others have a one-time process involving micro deposits that can take 1-3 days.

Once the accounts are connected you can transfer money to Revolut – make sure you are initiating the transfer from the bank or brokerage account you are transferring money out of and not from within the Revolut app. If you intend to transfer money to your account regularly, I generally recommend you use the “regular bank transfer” option described here.

The other options Revolut offers – such as debit card top-ups, Apple Pay, and connecting your bank account within the Revolut app – are good backup options if you are having trouble connecting your bank account. These options are generally more limited in terms of the amount you can transfer at a time.

What the standard version has to offer

A standard Revolut account allows you to exchange up to $1,000 at the live market rate completely free. This is a fantastic option for someone looking to exchange smaller amounts each month. With the free plan, additional exchanges made beyond the $1,000 limit will incur a 0.5% fee which is still equal to or cheaper than fees charged by many currency exchange services. For someone looking to exchange & transfer $2000 a month or less, this is likely the cheapest option.

Best premium & metal features for Olim and potential Olim

The premium plan currently costs either $9.99 a month or $94.99 if you pay annually. The metal plan currently costs $16.99 a month. If you plan on transferring $7000 a month or more to your Israeli bank, the metal plan will be more economical for you than the premium plan. Here is a breakdown of some of the best features:

Exchanging Currency

With the premium plan you can exchange up to $10,000 per month using the live market exchange rate. If you need more than that, the metal plan includes unlimited currency exchange. Exchanging currency on the app is simple, quick and easy.

No-fee debit card

Revolut’s debit card can be used in basically any country in the world including Israel. Each time you use the card in Israel for a shekel payment, funds will automatically be withdrawn from your shekel account balance. Alternatively, if you don’t have a shekel balance at the time of purchase, the money you spend will be automatically exchanged into shekels from your dollar balance at the live market rate. The card can also be used to withdraw the ILS equivalent of up to $1,200 in cash per month from an Israeli bank ATM. They will ship a replacement card to you anywhere in the world, including Israel.

Using this card for regular purchases in Israel can allow you to limit the amount of money you need to transfer to your Israeli bank. If you plan on using this card for everyday purchases in Israel, it is recommended that you maintain a Shekel balance in Revolut to cover any spending as that will ensure you avoid weekend exchange fees (discussed more below).

International Payments

Every time you transfer money from Revolut to your Israeli bank, you will now need to pay an additional 0.4% fee (premium plan) or 0.3% fee (metal plan). If you plan on transferring $7000 a month or more, the metal plan will be more economical for you than the premium plan.

Additionally, Revolut currently also uses the SWIFT system for transferring money to Israel. Your Israeli bank will treat this transfer as an incoming foreign wire and may charge a fee. Some Israeli banks charge no fees for incoming international wires in Shekels, others charge a small fee. Israeli bank fees vary widely so it is difficult to know exactly what your bank will charge for this. (More on this below)

Funds transfered from Revolut to your Israeli bank usually arrive in your account by the next day. Like all transfers to Israel, if your bank determines the transfer to be “unusual” you will likely be required to explain the funds source – more tips on how to deal with that, here.

Now that Revolut has an official Israeli banking number, we expect all of this to change in the near future.

Vaults

Savings vaults are an extremely simple concept with very powerful results. They are essentially just sub-accounts within your Revolut account which allow you to organize your savings and plan for specific goals in different currencies. You can move money between a “vault” and your regular account balance instantly.

I recently saw a great pre-Aliya use case for this feature. The story begins with a guy planning to make Aliyah with his family within 1-2 years, let’s call him Shmuel Goldberg. Shmuel has been watching the dollar-shekel exchange rate in horror. He has no Israeli bank account and doesn’t own any shekels – all his net worth is in dollars and investments. He started putting money aside every month to prepare for the costs of making Aliyah but is genuinely worried that the dollars he is saving won’t be worth nearly as much in shekels by the time he makes Aliyah.

Revolut offers a really great practical and emotional tool for this situation. Say Shmuel was to set up a vault called “The Goldberg Aliyah Fund” and set a goal for how many shekels he wanted to save up. Every month Shmuel could cheaply convert those dollars he was saving to shekels and then instantly transfer them to his Aliyah fund and easily track how close he is to achieving his Aliyah fund goal. Instead of worrying about the exchange rate he can “dollar cost average” and know that regardless of what happens with the exchange rates in the short-term, he has some shekels saved up. All this without the extreme hassle of trying to set up an Israeli bank before Aliyah.

Practically, this is also a useful tool for someone already living in Israel who wants to save up shekels from foreign income but doesn’t want to transfer them immediately to their Israeli bank account or prefers to transfer smaller amounts at a time to avoid hassles from his bank. It’s also a great feature when saving up for a vacation – for example: saving in Euros for an upcoming European based vacation.

Using Limit orders

Another great feature of Revolut is the ability to easily set limit and stop orders.

A limit order allows you to set a specific exchange rate that is above the current market rate. If this rate is reached, your funds will automatically be converted. Say the dollar shekel rate is currently 3.1 and you think it will soon reach 3.3 – all you have to do is select limit order, type in 3.3, decide how much you want to convert at that rate and submit your order. If the market rate rises to 3.3 or higher your trade will automatically go through at the best available rate at or above 3.3. Keep in mind that there is no guarantee the market will ever reach the rate that you set and the farther away you set the limit order from the live market rate the less likely the exchange will occur in the time you need it.

A stop order allows you to set a specific exchange rate below the current market rate. If the market drops and this rate is reached your funds will automatically be converted. These orders are used by some to reduce risk and limit potential downside in the event the dollar shekel rate were to drop significantly. Keep in mind that if you set an order too close to the live market rate, average daily ups and downs of the market could trigger your order. Additionally, a stop order does not guarantee you a specific price-or-better like a limit order would – if for some reason the exchange rate were to drop sharply, your trade could execute at a price lower than the stop rate that you set.

Revolut makes these types of orders much simpler to execute and easier to understand than other platforms.

Compare all of Revolut’s pricing plans and features, here.

Drawbacks of using Revolut

Rising prices

Unfortunately, Revolut has now increased their fees multiple times in 2023. This has made Revolut a much more expensive option than it used to be.

Need non-Israeli address to set up

If you already moved to Israel and don’t maintain a verifiable address outside of Israel you won’t be able to open an account.

Doesn’t support Zelle

Revolut does not currently support sending money with Zelle.

New daily and Weekly limits

Premium users are limited to $30,000/day and $100,000/week on withdrawals from the account. Premium user are now also limited to $10,000 total per month of currency exchange. These restrictions makes Revolut a much less attractive option for transferring very large amounts of money – such as for a down payment on a house in Israel.

Can’t deposit shekels or send regular bank transfer

While Revolut partners with banks all over the world, it does not currently have any direct access to the Israeli banking system. This means you can’t use your Revolut account to cheaply transfer money out of Israel. You also can’t use a regular domestic bank transfer to transfer funds from Revolut to your Israeli account so your Israeli bank may charge a small fee when they receive funds from your Revolut account. This also makes it more difficult to use your Revolut account to bypass the Israeli banking system entirely. It is likely that even if you use Revolut to manage most of your purchases in Israel, you will eventually need an Israeli bank account to pay at least some of your expenses in Israel.

Revolut recently announced that they will soon be providing US based accounts with unique IBAN numbers which should make it easier to transfer large amounts of USD from your US bank to your Revolut account.

August 2024 Update: The bank of Israel has just issued Revolut an official Israeli banking number (78). This is a big step forward and the hope is that you will soon be able to easily deposit NIS and use Revolut to send regular local bank transfers.

Weekend purchases

Revolut charges a 0.5%- 1% fee for exchanging currencies on weekends when the currency markets are closed (between 5pm New York time on Friday and 6pm New York time on Sunday). This fee will also apply if you use your Revolut debit card to make purchases in Israel during this time if you are not holding a shekel balance. Given the lower liquidity, exchanging currency over the weekend is generally not the best idea.

This is why it is always a good idea to maintain an ILS balance in your Revolut account if you plan on using your debit card regularly – that way you won’t have to worry about any fees or conversion costs when you use your debit card over the weekend – all purchases made in Israel will automatically be deducted from you ILS balance.