enjoy your ~0% in Irish banks
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.
You would be mad to move your money to Raisin. Most of the reviews are from people who cannot access their cash now.
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)
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?.
I like how it gives you a progess bar so you can check every single day until the jackpot 😂
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
Is anyone aware of any platforms similar to Raisin Bank that allow Irish residents to take out EU fixed term deposit products?
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
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
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 😂
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
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
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.
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
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.
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.
No not for the Youniited account, I will chase-up with them.
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.
I wonder should a lot more people be looking to shift their savings out of Irish banks?
Seems to be little competition and they are taking the proverbial piss with the gap between what they are now lending at and what they are giving depositors.
A good kick up the arse could be in order.
Once you lose customers, it's hard work to get them back.
did you get your bank account IBAN @Sconsey ?
My limit on line raised to 20k after 2 days
Limit increases by 1K/day up to a max of 20K after 20 days. If you want to do a large transfer you can do it in a bank branch
Mine is working anyway.
Anyone having issues logging in? I use a password manager so I definitely didn't enter my password incorrectly. I did "Forgot Password" a few times and I still can't access my account. I emailed support but no response yet.
Ooh, I certainly hope so. Thanks
I am fairly sure that limit goes away after two or three days, the payee is no longer considered 'new'.
Raisin it to an amazing level? 😉
Cheers!
I'll go in and tell them they'd want to be raisin the limit 😂
I think if you go into a branch the limit is a lot higher
