I'd say ome needs a UK address. Perhaps open to some who has a child studying in UK and putting money in through the child.
What tax is payable on them in Ireland if such a case was possible ?
Currency risk though.
Is there any way Irish based investors can buys these?
"NS&I, the UK government-backed savings body, has issued one-year fixed bonds paying interest of 6.2%, its highest rate of interest on guaranteed bonds since they were first launched in 2008 "
https://www.proactiveinvestors.co.uk/companies/news/1024956/ns-i-goes-all-in-with-6-2-one-year-savings-bonds-1024956.html
These are separate contracts/terms. So you are locked in for the contract term, as follows:
3 month fixed term deposit, 0.01% AER
6 month fixed term deposit, 0.15% AER
1 year fixed term deposit, 4.21% AER
2 year fixed term deposit, 3.45% AER
3 year fixed term deposit, 3.49% AER
Why anybody would bother with the first two contracts is beyond me.
Almost all products on raisin.ie are fixed term with no possibility of early withdrawal. One bank, Alior, allows early termination with the caveat that early termination causes the rate to go to zero %.
So yes, your initial comment is correct, when dealing with Raisin you are locking your money away for the term of the contract.
Correct, you need to be certain you don't need the money for 12months.
If I am reading it right, you need to be certain that you can do without the money for a year. Because there is no way to get the money out early. Which makes me wonder why the rate is 0.01%, then 0.15% during the year, and only hits 4.21% at twelve months. If you have no access to the money before twelve months, what is the point of those lower rates?
Availability Early termination not possible. (Details see Point 6)
6. Availability The deposit is not available during the term.
As for the CCR, surely not an issue as I'm not applying for a credit product. Do foreign deposits show up on the Irish CCR?
@barkerj Correct that it shouldn’t be connected. But I check it regularly anyway and if i had a refusal like you received I would definitely do so. Just to reassure myself. It costs nothing apart from 10 mins it takes to complete the application.
Your supposition that your application was cancelled because the interest rate had changed makes sense. I had taken it based on your first post that you applied after the rate increase. Probably worth applying again and see what happens. You’ll find out that way faster than you ever will via Raisin.ie support.
A few days after I applied for the BluOr account, I applied for a BFF (3 month) account, which was approved in about 3 or 4 days. No problems. I was aware that Raisin had sketchy customer support, and now I'm realising how bad it is - nobody has provided a response as to why it was cancelled. The only thing I can find in the FAQ is as below - perhaps they decided that the 4.02% rate at the time I applied wasn't as good as the 4.21% on offer now - fine, but they could just give me the higher rate (don't think anyone would complain about a bit more interest), or give me the option to amend my original application. Or at least explain that this is what happened. Now I'm just left wondering as to the reasons.
@barkerj That’s very unsatisfactory, especially not being given a reason. The most obvious candidates are that you either failed an an AML test or BlueOr have reached capacity. I’ve also noticed that some of these online deposit takers appear to have less than robust procedures and systems and you may just have fallen foul of some procedural issue. If it was me I would certainly ask them to explain why the application failed, setting out the substantial reasons for this, and if necessary make a formal complaint. You want to be sure that your good name and reputation aren’t in any way compromised.
Although unrelated, I would also submit a request to the Irish CCR for an up to date copy of my record, but then I do that at least once a year anyway.
As a matter of interest, do you have other deposits with Raisin.ie ?
I applied to open an account with BluOr on 17th August, seemed to be stuck in some sort of limbo, so yesterday I contacted customer services (via my Raisin account mailbox) to give a nudge. Overnight, I got an email saying that they couldn't open my account - see below. What gives? There's no reason why they wouldn't based on who I am (I'm not dodgy in any way). Have they just maxed out on the number of accounts they can take? Anyone else have this issue?
"Unfortunately, your opening application could not be completed. We will credit your Raisin Account in full.
As an apology for the inconveniences caused, we will compensate you for the interest you would have earned until now had your application been confirmed. You will receive this compensation in your Raisin Account within 14 days.
Thank you for your understanding."
Interesting, thanks. I definitely get nowhere near 5k from interest, but stock options may be causing me to pass some threshold. Either way, the online form 11 is good for calculating, haven't found any discrepancies with it in recent years.
It is my understanding that the 4% PRSI doesn't kick in unless you have "unearned income" of €5K.
Explained in more detail here.
PRSI (shanahan.ie)
Banca Privata Leasing now offering 3.9% for 1 year term.
BluOr gone up to 4.21%, really makes you realise how useless Irish Banks are.
I saw something about BFF being overwhelmed by the number of applications and not wanting any further new applications for a week or so.
BFF have suddenly disappeared from Raisin's offering, strange as hey had just increased their rate to 4.4% on there
Thanks. I can't find anything to verify that online, but if anyone else could confirm, that'd be great. To "test" various scenarios, I set up a test form 11 on the Revenue website - I put in an example of €100 foreign interest, and claimed €30 was paid in foreign withholding tax. It didn't give me any errors when I did this - in fairness to the online form 11, it flags problems straight away and doesn't let you do anything that is outside the rules.
Does anyone know how you deactivate it?
That is consistent with them not appearing to do banking on their website. I wonder how the deposit guarantee scheme works when the institution doesn't seem to be holding deposits
You do not get an IBAN for younited
I know nothing about banking or Fintech but looking at the banks they seem like a motley collection alright.
The younited website at https://www.younited-credit.com/ suggests that they are mainly a credit based bank. No mention of deposits or savings there which suggests that they fund through the likes of raisin
Regarding BPL https://www.bancaprivataleasing.it/ they do seem to offer deposit services but linkedin suggest they're small at about 150 employees
BluOr come across different altogether and https://www.bluorbank.lv/en/term-deposit suggests you can open a 1 year fixed term account with them directly. But the interest given is a little less than what you get through raisin. BPL on the other hand is offering it's own local customer 4.4% for 1 year fixed but there is no EU internet option:
And judging by one of the related reviews I read on trustpilot this is probably not a bad thing:
"lived a whole nightmare day just to make a transfer from the deposit account to my default account. I was no less than 7-8 hours (real, no exaggeration!) hanging on the phone, I had to make 7-8 phone calls (with relative average wait between 20 and 30 minutes each time) to different numbers, between remote acknowledgments , Secure calls, cross-checks, security questions... without finally succeeding in making a mere transfer from my Banca Privata Leasing account to the account of another bank, again in my person's name (where is the danger?). Operators available but malfunctioning IT systems and overly complicated security "cages" (probably devised by some management with little contact with reality) (eg. answer six personal questions to ensure safety and much more). A true example of inefficiency and bureaucracy to the nth degree. After overcoming many obstacles to make transfers, I without hesitation withdrew all my money"
Funny to read but I do feel for the guy
On another thread somebody showed an IBAN (redacted) for BPL. Can anyone who invested with younited confirm if they got an IBAN for them ?
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.
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
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.
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.
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!
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.
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.
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....
Debete
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 :
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.
