Surely they allow for the 10% withhold tax
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.
BluOr at 4.02%
BFF at 4.00%
With who through Raisin ?
Over 4% for 1yr now available on Raisin.
You'll be liable for Irish DIRT tax at 33%, You need to declare it on your tax return.
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
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.
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.
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
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.
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.
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
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?
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.
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
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
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 .
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.
I withdrew the interest + original deposit.
I still have other deposits with them.
I didn't prolongate because it was a bad interest rate compared to what you can get now.
Did you withdraw the interest and go another year with your original sum?
And I got the withdrawal with 1-2 days. So everything went well.
Bit of a dice roll tbh
ECB are raising rates by 0.25% every month without no signs of stopping before 2024. So rates could in theory be up to 4.75% by year's end (although it's likely the rate of increases will slow before then)
However the banks offering high savings rates are probably going to be slow to pass that on since they'll argue they had market leading rates already
So maybe try plugging in an extra 1% to the savings calculator and see how much extra that gets you. If it's €50 then probably not worth waiting, if it's €500 then maybe it is worthwhile
An alternative approach if you're saving a lump sum might be to invest half now and the other half in 6 months? Gives you a bit of flexibility if rates change
Is it wise to lock into the 3yr fixed rate of 3.5% or is it better to wait and see if there are further rate rises in the coming months?
(Yes i know i got that at just the wrong time and "only" got 1.5% :( )
So the above screenshot is what happens when it matures.
It is not immediately available to withdraw, it takes 1-2 days for that to happen.
I have now requested withdrawal which i assume works !
Also it is good to see they have added mTAN to the login/withdraw process for some extra security on the site.
Yeah the Irish government really doesn't like people saving, they want you out spending. Between that and horribly low interest rates on savings accounts, there's really no reward for saving
The joke is that lower DIRT tax might reduce inflation by encouraging people to save.
But I guess with the amount on deposit in Ireland being so high there's no incentive to increase savings any more
Thx.
Oh man, so I must pay 43÷ tax (10÷ Latvian + 33÷ Irish) on the interest earned?
If I had known that I really would not have bothered with all the hassle involved with setting up the Raisin account/engaging revenue for proof of address/manually posting revenue signed forms to Berlin 🙈
EDIT: I should probably have opened with the statement that I am not a qualified tax advisor or accountant, if in doubt please engage a professional to help you out
So BluOr bank is based in Latvia (you already know this but bear with me)
There is a double taxation treaty between Ireland and Latvia but from what I can see it doesn't cover DIRT, only income and capital gains taxes
So the bad news is you'll have to pay tax in both Ireland and Latvia without any refund
The Latvian side of the equation should be taken care of by the bank, you'll need to settle up the DIRT tax yourself by declaring it on your tax return, more info below
The page says to enter the "total interest received" into your tax return. My understanding would be the total interest BEFORE withholding tax is deducted by the Latvian government
To give a worked example:
Say you earn €300 total interest
10% (€30) is withheld by BluOr for tax in Latvia
You enter €300 income from interest on deposit accounts into your tax return. Revenue then calculate your tax liability based on current rates (33%). You now owe €100 in additional tax
You can either make a payment through the revenue website, or revenue may take some action to resolve this (usually by reducing your tax credits for a year or two)
I can't find an answer to this, can someone please explain like I am 5?
I've 10K at 3÷ with BluOr Bank.
I've submitted the forms to reduce the withholding tax on the interest from 20÷ to 10÷.
How much DIRT tax will I owe the Irish government (via form12) when the deposit matures in 2024?I s it 23÷?
I have my first one ending in 2 days. I will be withdrawing when it happens.
I will let you know if they have robbed me and don't let me withdraw 😁
