The online platform offers an easy way for users to access savings and deposit products from banks across Europe.
As Irish banking customers we often look on in envy at some of the much lower mortgage rates and higher savings rates that are on offer from banks elsewhere in Europe and wonder why we can't access them too.
Well one company is making it easier to access better savings rates at least - and that's Raisin.
Raisin is an online marketplace for savings products across Europe. It's based in Germany and says its mission is to enable "savings without barriers".
Through its innovative online platform, Raisin allows Irish savers to easily access savings products from banks elsewhere in Europe where rates are generally better than those on offer here in Ireland.
What's available through Raisin?
With a Raisin account you can browse savings and deposit products from numerous reputable banks across Europe and avail of potentially better rates of interest for your money.
You can choose from a range of fixed-rate deposit accounts with terms as short as three months up to five years. Demand deposit accounts, which allow you to access your money whenever you need it, are also available. And you can you start saving into these from as little as €1, with no minimum term.
The rates on offer through Raisin can change on an almost weekly basis. And different banks from different countries are available on the platform at various times throughout the year. But in general you'll find rates that are between 0.50 to 1 percentage point higher than the best rates available from Irish banks.
Signing up to Raisin
Signing up to Raisin is fairly simple and requires just one online registration. Once registered, you can choose from numerous savings and deposit products from banks throughout Europe and manage your savings entirely online too.
To sign up, all you need to do is follow these simple steps:
- Register on Raisin.ie and verify your identity using video identification
- Log in to Raisin's online portal using your login details and start browsing rates
- Sign up to one or more savings accounts and deposit your money
- You can then manage all of your savings accounts online from the one Raisin account
Is there a charge for using Raisin?
No. The service is entirely free.
Raisin doesn't charge you any fees or commission, either to lodge or withdraw your savings, meaning your money works exclusively for you.
Is my money safe and is there anything I should be concerned about?
Any money you have on deposit up to €100,000 per bank is covered by the relevant deposit guarantee scheme of the country the bank operates in.
Using Raisin also allows you to diversify your savings across different banks and countries, which helps to mitigate risk and is a prudent approach to managing your finances. However you should still make sure that the bank you sign up to is well run and fully licensed by a reputable financial authority. And make sure you read the relevant terms and conditions before signing up.
It's also a good idea when depositing money with any new provider to test a small amount first. Once you’re happy everything is working to your satisfaction you can then transfer a larger amount.
However, there will also be some slight paper work when it comes to paying deposit interest retention tax or DIRT...
What about paying DIRT?
When you save with an Irish bank, DIRT (which is currently 33%) is automatically deducted from any interest you receive and paid automatically to Revenue on your behalf. So you've nothing to worry about from a tax point of view.
But when you save through Raisin, or indeed any non-Irish bank, your returns will be paid out tax-free. So you'll need to declare any interest you get for DIRT purposes on your annual tax return in Ireland. Though this is simple enough and can all be done online.
Some banks in some countries might also charge a withholding tax to non-residents, so this is something to clarify before signing up. However in most cases the withholding tax can be reduced or avoided altogether if you fill in a residency declaration which Raisin will send to you.
Another thing to consider is what happens in the unlikely event of your death.
Accessing money in an overseas bank account can be more difficult. Depending on the amount you have saved, whoever is looking after your estate may have to apply for probate in the country involved as well as in Ireland, which could be timely and costly.
Alternatives to Raisin
Opening a savings account with Raisin may not be for everyone.
The good news is that there are plenty more options available if you want to make your money work for you and get a worthwhile return on your savings. Check out our article on alternative savings options for more information.
We also recorded a podcast this year on alternative savings options for consumers if you’d prefer to sit back and listen - you can find that episode here!
Compare savings accounts on bonkers.ie
Remember, if you’re looking to save your money, you can easily compare savings accounts for the best rates Irish banks have to offer right here on bonkers.ie.
We compare savings accounts from all of Ireland’s top financial institutions so whether you’re a monthly or lump sum saver, don’t worry, bonkers.ie will find the best interest rate for you.
Use our comparison tool here to compare savings accounts across the likes of AIB, Bank of Ireland, and more!
Make sure you check out our banking and personal finance comparison page to see how you can lower your other everyday banking costs and get the best return on your money.
