Raisin Bank

dxhound2005

They would love that. They are stuffed to the gills with money that nobody wants to borrow. There is zero reason to offer higher deposit rates, when so many people are happy to keep piling in the deposits, even with such paltry returns.

Even worse are the Credit Unions, who only announce at the end of the year whether they will pay any interest. And in recent years it is usually zero. Doesn't stop vast sums rolling in.

Sconsey

https://www.boards.ie/discussion/comment/120558518#Comment_120558518

No not for the Youniited account, I will chase-up with them.

Yillan

Looking at Raisin as an option. There's a French 'bank' with no withholding fees called Younited with a good rate.

It seems that they are a FinTech company looking for investment rather than a bank offering deposit interest rates. That's my understanding of what the business is, but I'm open to correction.

Articles around raisin talk about them being an alternative to the extremely low interest rates in Ireland, but if i get a deposit account in ptsb, I'm earning interest. If i deposit with Younited it moreso feels like I've invested in a Fintech start up.

Sconsey

https://www.boards.ie/discussion/comment/120608079#Comment_120608079

Yeah you are not wrong really, I had the same impression when I was researching them. The distinction is that while it feels like an investment, it is still treated like a deposit. Which means your money is protected by national guarantees, unlike an investment would be.

Who knows in reality what would happen if the bank crashed and we tried to get our deposits back, but in theory anyway they are protected just as much as a deposit in PTSB.

j.s. pill II

Is it possible to take out multiple fixed term deposits with Raisin Bank for the same bank/product?

For instance, if I had 300k to i wanted to put on 1 year deposit, could I take out 3x Younited 1 year deposits? Or, would I need to spread across different products from seperate banks?

Unable to find this informaiton on Raisin.ie - Thanks

Sconsey

https://www.boards.ie/discussion/comment/120608768#Comment_120608768

I found this, looks like no you cannot exceed 100k, this is in the product description of each deposit I looked at, may not be in all of them:

The maximum amount of funds deposited at the Bank cannot exceed EUR 100,000.00. If you already have funds invested with Bank, the maximum amount that can be invested for the purpose of this term deposit is lowered (maximum deposit would therefore be EUR 100,000.00 minus the amount of funds already invested).

So it looks like you could not even exceed the 100k by buying different products, your overall total cannot exceed 100k.

You would be taking a fairly big risk exceeding the 100K anyway as the deposit guarantee would not cover anything over that amount.

the_amazing_raisin

Somewhat OT, but I wonder if the deposit guarantee is cumulative across different EU banks

As in if I had €100k in a bank in Ireland and another €100k in a bank in France, am I insured for €100k or €200k?

If it isn't cumulative and you were in the enviable position that you have several hundred thousand in the bank then presumably you'd try to split the deposits into €100k chunks across as many banks as possible to give you the absolute minimum risk

Of course if several major banks collapsed at the same time to the point where all your savings were at risk then I kinda suspect the deposit guarantee might be in trouble as well

Sconsey

https://www.boards.ie/discussion/comment/120609650#Comment_120609650

I am fairly sure it is the national guaranteed amount per bank...so if the national deposit guarantee amount is 100k, then you are covered for the first 100k in each bank in that country, assuming the bank falls under the guarantee scheme. If you were sitting on a few hundred thousand then you would have to split it out over a number of banks to ensure it is all covered.

And as you say, if more than a few banks blow-up at the same time then all bets are off as I think the guarantees are backed by funds that do not come anywhere near a fraction of the total deposits. In Ireland's case, in 2022, just over a half of one percent. I've no idea what would happen if more than that was needed to cover lost deposits.

https://www.eba.europa.eu/regulation-and-policy/recovery-and-resolution/deposit-guarantee-schemes-data

the_amazing_raisin

https://www.boards.ie/discussion/comment/120611926#Comment_120611926

Yeah much like car insurance is based on the idea that everyone isn't going to crash their car at the same time

Like I said, bit of an OT thought, hopefully some day I'll have enough money that this might actually be a consideration 😂

Bass Reeves

https://www.boards.ie/discussion/comment/120611926#Comment_120611926

Most banks go under because of liquidity and poor management very few go bust because they have not got the money

Usually the issue is that too many people demand there money of banks have it lend out they cannot get it back.

I think technically now banks do not lend deposits. They lodge them with the ECB. The ECB then allows them to draw money down to lend out. They must have a certain amount of liquidity and bonds to co wr a percentage of the funds they have.

The recent collapse of a few banks in the US was because they had depositors money in government bonds to allow them to kay an interest rate. As interest rates rose the bonds were worth less than there face value 1-2-5 or however many years they were for. Technically they had depositors money they just couldn't access it

j.s. pill II

https://www.boards.ie/discussion/comment/120609337#Comment_120609337

Thanks for that. This text appears in the product information sheets for the individual providers (see Raisin Bank product information for Younited here for instance: 78751.pdf (raisin.ie))

Under EU rules for Deposit Guarantee Schemes, all EU member states are obliged to establish bank-financed deposit guarantee funds. Cover must be up to €100,000 and apply per person per institution. So yes, this means that if I was to buy different deposit products from the same institution, my deposits are only protected up to the first 100k. My reading is that if my deposits are held with multiple institutions (Younited, BFF, Blue Or etc.), the guarantee applies to each deposit product held by me with coverage for me per institution up to 100k. Raisin bank are not a 'bank' in this instance, more of an intermediary linking me with banks/institutions.

Below IT article (behind paywall) offers a good overview of consideration to take in to account for deposits in EU banks outside Ireland (like withholding tax & DIRT). Not very much on deposit guarantee however:

Getting a 2%-plus return on your savings? It’s not straightforward but it is possible – The Irish Times

j.s. pill II

Is anyone aware of any platforms similar to Raisin Bank that allow Irish residents to take out EU fixed term deposit products?

the_amazing_raisin

https://www.boards.ie/discussion/comment/120617374#Comment_120617374

I guess in theory you can just go to the banks directly, although obviously this will create some difficulties. I don't think any EU bank can legally refuse you, but they can make it practically difficult (like you have to go to the branch in person to setup the account)

Raisin seem to operate like a broker and comparison site for those banks in the sense that they do the legwork for you

blade1

I like how it gives you a progess bar so you can check every single day until the jackpot 😂

imissvivanderson

Was going to transfer my savings to raisin bank this week but saw loads of horrific reviews on trustpilot and am now completely spooked and don't feel it's worth the risk/hassle. Has anybody else used them?.

caviardreams

I just set up an account a few weeks ago and found it VERY painless including transferring the money over - was a bit concerned but has worked great so far. Went with the Younited rate for 1 year so I can get out after a year if I have concerns about safety etc or get spooked myself. Didn't want to lock it away for longer to start with until i am more comfy with it

There is a €50 referral bonus for Raisin accounts so PM me with your name and email if you want a referral (50 for referrer and 50 for the new customer)

herbalplants

You would be mad to move your money to Raisin. Most of the reviews are from people who cannot access their cash now.

Bass Reeves

https://www.boards.ie/discussion/comment/120677619#Comment_120677619

Is that because the money is on deposit for a fixed period. If you deposit money for a fixed period you may not be able to access it until the end of that term.

dickface

https://www.boards.ie/discussion/comment/120677619#Comment_120677619

enjoy your ~0% in Irish banks

dickface

https://www.boards.ie/discussion/comment/120677877#Comment_120677877

It's because his brain doesn't work in a reasonable manner.

Werdna87

I was considering placing a large investment on 3 year fixed rate with Younited through Raisin Bank but upon reading the some of the Trustpilot reviews I can't bring myself to pull the trigger. Mostly concerning is the amount of interest actually stated at the beginning changing and working out less than quoted and the multiple people struggling to retrieve the money when the fixed term has elapsed. That combined with the apparent lack of customer support from Raisin means I'll be back to PTSB. They're dreadful too but at-least there are physical branches and they're not a middle man. One throat to choke.

blade1

I think a lot of the reviews are because people love to panic.

You see it here even if there's a delay in people's wages going into their Irish bank accounts.

People start losing their shīt.

Werdna87

https://www.boards.ie/discussion/comment/120678767#Comment_120678767

Totally get that, when it comes to people's money there's going to be a very emotional reaction. And I know it's the people who have had a bad experience that always shout the loudest. I usually don't let a few bad reviews taint a service or lead my decision but just seems quite a few have had the same experience. I may still dip my toe in the water, test it for a year on a couple of k and see how it goes. Has anyone tried Trade Republic as an alternative?

AlmightyCushion

https://www.boards.ie/discussion/comment/120678902#Comment_120678902

I use trade Republic. It's pretty easy to set up (although some had issues with the app not accepting the letter in their PPS no and had to use the desktop website). It's easy to get you money in and out. No fixed term and interest is deposited into your account monthly. Like raisin, you'll need to sort the DIRT out yourself.

If you would like a referral let me know and I can send you over. It will get us both €50.

herbalplants

https://www.boards.ie/discussion/comment/120678390#Comment_120678390

I don't enjoy the 0% in Irish banks at all but I rather not loose them either.

There was a platform there P2P who had good reviews at the time until it didn't. I lost some money on that and most of other people like me wasn't able to move their cash off that platform, frozen.

scuba05

I opened my yo utd 5 Yr fixed term deposit account, this week, after alot of procrastination. As already mentioned, I was put off by the customer support issues, (no face to face or office in Ireland, don't answer the phone, can't leave a msg etc). However, they do reply to email.

Despite the negativity on trust pilot, I chose to forge ahead. The Yo Bank deposit account opened within 2-3 working days.

I think it's the unconventional nature that spooks most. However, I will reiterate, I wouldlije to be furnished with an Iban for the yo bank account.

I am quoted my Raisin Iban in the product information page.

Murph3000

https://www.boards.ie/discussion/comment/120684340#Comment_120684340

Why did you go with 5yr when you can fix for a lot less time at same rate. Are you expecting rates to fall?

j.s. pill II

https://www.boards.ie/discussion/comment/120684340#Comment_120684340

I very recently completed setup for a number of 1 year deposit products. The customer service experience was not brilliant - automated email updates were supposed to keep me informed of progress with establishment of accounts but updates were patchy at best. Setup for Italian institutions takes A LOT longer than others - but I guess this is due to processes in that country. Still, I won't complain too much, in light of rates offered.

newmember2

Everyone's saying how painless it is to give them your money. That's great an' all, but is there anyone who can verify it was as painless getting the money back at the end of the term?

blade1

https://www.boards.ie/discussion/comment/120710017#Comment_120710017

I recently cashed out my state savings.

From when I put in the request for my money back it took a couple of days short of a month to receive. So not just raisin that's slow to deal with.