Raisin Bank

dickface

FYI: I am not affiliated with Raisin so just posting what things look like for those curious as it is an unusual service/app and the apprehension some feel is understandable.

footfall789

I contacted Raisin a couple of times by email and on their website and nothing , no reply . Personally I would like to speak to somebody if i was investing my hard earned cash.

As mentioned previously, its easy to invest the money but has anyone tried to get it out again. That is if the bank is still in operation when you want to withdraw !!!!

Also you have to remember to notify them when the term is up if you wish to withdraw, or it will be automatically be re invested again which I think is strange , the least they could do is notify you.

It all seems very 1980s to me like somebody in a back office somewhere has to write everything down in paper , we are in the 21st century here everything should be done instantly, excluding checking identity and address an stuff like that , it could take a few hours but no more .

the_amazing_raisin

https://www.boards.ie/discussion/comment/120898824#Comment_120898824

The two posts before yours are literally about someone withdrawing their funds successfully 😉

I agree I'd rather there was a human customer support but I guess that's what we're just going to have to get used to, every company wants to use more AI chatbots and employ fewer humans

If you want a person then you'll have to talk to an Irish bank, just don't expect the best rates

I suspect some of the archaic system with Raisin is because they're dealing with multiple banks. Raisin is effectively just a broker, the banks behind them are the ones that hold your money

As for whether the bank goes belly up, well it's up to you to read the terms and conditions of the savings guarantees and ensure you're happy enough.

I'm not sure I'd be too confident about the health of the Irish banking sector, we've two fewer banks than 5 years ago and probably half as many as we did in 2007

Is Raisin a bit riskier than the likes of BOI or AIB? Yeah probably a little bit, if nothing else it isn't based in Ireland so you can't go into someone's office to yell at them

Personally I wouldn't put my life savings into them, but if I had some money that I was hoping to generate a decent return then there's not many options other than the stock market

Stephen_Maturin

Yeah for what it’s worth people don’t blink about putting thousands into their revolut accounts but it’s extremely difficult to actually speak to a human at revolut about your account

Long Sean Silver

Raisin is NOT a bank. it is a broker who place/invest your money with Banks. These Banks are covered by the ECB Deposit Guarantee Scheme, which covers you up to €100,000 per customer per institution.

This is the same scheme that protects your money in Ireland. If you are in the happy position of having €5m with AIB or BoI, and they were to go bust, then you will be covered upto €100k with each Bank. ie you would lose €4,900,000.

Please note, I am not paid or qualified to give investment advice. The above is just my understanding/opinion.

panoramix

This may have been asked before

Any reason why a Term Deposit is visible on raisin from one country bot not from another?

For instance, I can see this

on raisin.es, but the same product is not there on raisin.ie .

Any ideas?

Hibernicis

https://www.boards.ie/discussion/comment/120900051#Comment_120900051

That's not correct. Raisin is a bank, see the following from the rasin.ie website:

Raisin Bank, trading as Raisin.ie, is authorised/licensed or registered by BaFin (Bundesanstalt für Finanzdienstleistungsaufsicht) in Germany and is regulated by the Central Bank of Ireland for conduct of business rules.

Regarding the DGS, see the following Q&A from Raisin's website:

Is the money I deposit at Raisin Bank protected?

The Raisin Account is an account opened with Raisin Bank, a German credit institution, and is protected by the German Deposit Guarantee Scheme which covers all deposits up to a maximum amount of €100,000 per bank and customer.

and

Is the money I deposit at Raisin Bank's partner banks protected?

All deposits with our partner banks are guaranteed up to a maximum amount of €100,000 (or the equivalent amount in the respective national currency) per customer and per bank. Across Europe, national Deposit Guarantee Funds must meet the minimum requirements laid out (see Directives 94/19/EC, 2009/14/EC and 2014/49/EU).

And so the money is covered by different DGS both when it is in Raisin's custody, and when it is in the custody of the partner investment bank.

Hibernicis

https://www.boards.ie/discussion/comment/120940201#Comment_120940201

You'd have to assume that it is down to a commercial decision by Raisin and/or Banca Sistema. Shame, 4.4% for one year is very attractive.

Long Sean Silver

https://www.boards.ie/discussion/comment/120943508#Comment_120943508

the ultimate aim of Raisin is not to hold your money, but to place it with another Bank so you can avail of those institution's attractive interest rates. it makes sense and is reassuring, that while your money is being (temporarily) held by Raisin, then you should also be protected under the German DGS.

for what it's worth, i have opened an account through Raisin, and i found the whole process very easy and user friendly. i would contend it was just as easy, indeed much easier than opening an account with my local PermTSB or AIB.

caviardreams

I also found it very painless and efficient. Between initial sign up and the security check and getting the Younited paperwork, and lodging the funds etc it was maybe a week max. Found teh security / iD process very through which gave me reassurance

Hibernicis

Signing up and giving the money and getting paperwork was efficient and painless.

Their recent 48 hour website outage and their handling of it was a bit of a concern though.

Jim2007

https://www.boards.ie/discussion/comment/120943508#Comment_120943508

A very specific question was asked:

Is the money I deposit at Raisin Bank's partner banks protected?

All deposits with our partner banks are guaranteed up to a maximum amount of €100,000 (or the equivalent amount in the respective national currency) per customer and per bank. Across Europe, national Deposit Guarantee Funds must meet the minimum requirements laid out (see Directives 94/19/EC, 2009/14/EC and 2014/49/EU).

A very straight forward yes or no answer could be expected, yet you got general statement about deposits of a bank being guaranteed by the scheme. Why? I would consider that an evasive answer and I certainly would nor draw such sweeping conclusions from it:

And so the money is covered by different DGS both when it is in Raisin's custody, and when it is in the custody of the partner investment bank.

Read the actual terms and conditions of the product you are buying, not some generic FAQ stuff to be sure of what you are committing to.

Cavmac1

Hi All,

Newbie on Raisin, so please be patient 😀 Just added money to deposit account through Banca Privata Leasing at 3.45%. What level of tax would I be expected to pay at the maturity date based on 5k? It's an Italian Bank so no withholding tax

Hibernicis

You'll be liable for Irish DIRT tax at 33%, You need to declare it on your tax return.

Patsy167

Over 4% for 1yr now available on Raisin.

Daddy Ireland

https://www.boards.ie/discussion/comment/120972402#Comment_120972402

With who through Raisin ?

Hibernicis

BluOr at 4.02%

BFF at 4.00%

cork_south

For BluOr you are liable for 43÷ DIRT.

10÷ withholding + 33÷ Irish DIRT.

Explained my investment to revenue and they confirmed 33÷ DIRT is required.

Bass Reeves

https://www.boards.ie/discussion/comment/120973395#Comment_120973395

Surely they allow for the 10% withhold tax

cork_south

https://www.boards.ie/discussion/comment/120973460#Comment_120973460

I contacted them directly via MyAccount, explained the 10÷ withholding tax for BluOr along with the related links however they came back advising interest is still subject to 33÷ DIRT.

Hibernicis

Irish DIRT is liable at 33% (or more in some cases if PRSI is applicable, or if the higher rate of 40% is applied due to late payment)

Because Ireland has a double taxation agreement with Latvia you claim a credit in respect of the 10% withholding tax paid to Latvia.

I would suggest that whoever in Revenue replied to your query was being smart and just posted the first part of this as a literal answer to your question. To get a conclusive answer you need to ask something like:

If I earn deposit interest on a deposit in a Latvian bank and the bank charges 10% withholding tax, when I declare the interest in Ireland and pay 33% DIRT, can I claim a credit in respect of the 10% withholding tax charged in Latvia ?

It is explained here :

https://www.raisin.ie/tax/

Jamie2k9

Debete

Cavmac1

https://www.boards.ie/discussion/comment/120973475#Comment_120973475

Thats the main reason I chose an Italian bank as no withholding tax. Also no requirement for a form. Less return but also less hassle. Unless I'm missing something obvious....

Hibernicis

Is the Italian bank you are using BFF ?

You’re correct that BFF is an Italian Bank, however its deposit facility on the Raisin platform is through its Spanish subsidiary, therefore Spanish tax rules apply. The following is a copy and paste from Raisin’s website

Withholding tax

The term deposits are offered through the Spanish branch of BFF Bank. Spanish witholding tax is 19%, however this will be reduced to 0% by providing the Spanish tax form "Auto Declaración de Residencia Fiscal de Persona Física y Jurídica" when opening the account. This form is only required once per customer, so ordering any additional deposits and prolongation is 100% online.

So you still need to fill in a form in order to reduce the withholding tax to 0% and you still need to declare the interest to Irish Revenue and pay DIRT. The difference is that there is no retained withholding tax and no need to claim a credit.

Cavmac1

No I am using Banca Privata Leasing. You are right though regarding BFF, which I noticed but believe should be made clearer to people as you could easily miss it.

Tusky

Hi folks. Looking at transferring funds from Irish savings account to a European bank via Raisin. I see a 6 month option with an Italian bank @ 4%. Will I be required to pay withholding tax or just Dirt? Also, how can I tell which banks require the withholding tax? Thanks!

Hibernicis

If you click on “offer details” under each offer on the raisin site you will get some info. Click on “product information sheet” and you will get a lot more.

barkerj

https://www.boards.ie/discussion/comment/120973475#Comment_120973475

I think some of the statements around the withholding tax on this thread have been a little confusing. I'm not sure exactly how things are laid out on the Form 12 as I submit a Form 11 each year, but I expect that they should be similar. There is a section (under "Foreign Income") to state the amount of EU Deposit Interest you got in a the tax year in question. Then there's a separate line where you state the amount of Withholding Tax ("Savings Directive withholding tax credit") that you were charged on that interest. The system calculates the DIRT payable on the full amount of interest (say if you got €100 interest, it would say you owe €33), but in a separate section of the return, it would give you a credit for any withholding tax you were charged. In the case of the Latvian 10% reduced rate, you'd have been charged €10, so you'll get a credit for that. The net result is that you pay €23. I believe that those who say that you pay Irish 33% plus Latvian 10% are incorrect.

There is a similar system in place on the form 11 for Irish interest that DIRT has already been paid on. You have to put in the gross (pre-DIRT) amount earned in interest. It then calculates 33% to state your DIRT liability, then gives you a credit for the exact same amount. All a bit "zero-sum".

On a side note, any interest that you make that is chargeable for DIRT (33%) is also chargeable for PRSI (4%). This seems to apply to both Irish and foreign income. It's pretty stupid to be honest, as I'd say most people don't bother filling out the section of the tax return unless they are making a fortune in interest, or they have a very diligent accountant. The average person who just lets the bank deduct the DIRT away, and thinks no more of it, pays 33% - whereas the person who files a thorough tax return effectively pays 37% (including PRSI).

I had wondered what the point was in filling out the paperwork to get reduced/eliminated withholding rates (depending on the country) - since you'll get full credit for any EU withholding tax in your return from revenue. The only advantage I can think of is that any roll-over of accounts will have a slightly larger figure rolling over (as the bank in question would have "withheld" less) for compound interest purposes. Any other benefit that I'm missing? The paperwork can be a bit of a faff, so wondering whether it's worth my time.

harringtonp

I see that there is

"A prolongation will be initiated automatically unless you deactivate it in online banking."

against all banks. I take it this means that if you forget to deactivate it your savings will be tied for a further year and there is no comeback on this

Hibernicis

In answer to your question re why bother to complete the documents to reduce/zeroise foreign withholding tax at source, given that you can offset it here, I seem to remember hearing (but I am not certain) that the maximum you can claim credit for in Ireland is 18%. Might be worth checking this out.