Challenger bank Revolut has rolled out an update to its Savings Vault product, which will now provide 0.7% annual interest.

The Savings Vault offering also has features such as no minimum deposit limit, anytime withdrawals and daily interest payments.

Additionally, the Financial Services Compensation Scheme protects customers’ saving up to £85,000.

Revolut chief revenue officer Alan Chang said: “With rising inflation creating pressures on individuals and households, savings are a critical enabler to help people achieve financial independence which is why we’re excited to be able to offer a market-leading rate on our Savings Vaults with annual interest paid daily for our UK customers.

“For us, this is another step towards our goal of democratising the financial services industry and providing greater value than other market players. We want to offer a saving product that will help people to save their money more effectively and reach their financial goal faster.”

The new update is available to Revolut Metal customers. It will be launched for Revolut’s Premium, Plus and Standard later.

Earlier this month, Revolut announced its expansion as a bank in ten Western European markets.

The lender now operates in 28 European Union markets with Belgium, Denmark, Finland, Germany, Iceland, Lichtenstein, Luxembourg, Netherlands, Spain and Sweden as the latest ones.

Last year in July, the digital bank reached a valuation of $33bn after securing an $800m investment.