Raisin to launch deposit accounts in Ireland in weeks, AIB entering Germany

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Raisin, who are owned by Savings Global, who are owned by a series of banks, are launching deposit accounts in Ireland in the coming weeks.

Raisin, will offer a market whereby personal savers, can access rates from multiple banks.

The rates will apparently be in the below ranges:
1.5% AER fixed for 1 year
2.0% AER fixed for 2 years
2.5% AER fixed for 5 years

25 EUR sign on bonus.

More here: https://www.raisin.com/
and here: http://www.irishtimes.com/business/...er-savings-rate-to-german-consumers-1.2501376

Meanwhile, AIB are going to offer German savers 1.4% AER fixed for a 1 year term deposit.

More to follow.
 
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Savings Global seems to be a broker which allows German citizens put their deposits with banks outside Germany.

The best rate for one year fixed is 1.6%

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Not sure why the Bulgarians would care too much whether they get their deposits from an Irish citizen or a German citizen.

Brendan
 
Presumably, the deposits with Raisin would be subject to DIRT for Irish-resident savers?
 
The Raisin rates differ slightly to the Savings Global rates.

I have registered for Raisin.

nephster said:
Presumably, the deposits with Raisin would be subject to DIRT for Irish-resident savers?
Click to expand...

Yes, the interest would be subject to DIRT but DIRT would not be deducted at source.
 
Raisin is clearly going to operate a deposit market place like Weltsparen. This is going to give Irish residents access to placing deposits with a large range of banks that was never possible before. This really is very good news for Irish savers.

It will make operating best buy threads more challenging!
 
Will the Raisin savings be covered under Irish guarantee scheme? I know it said the Aib German one would be, but the Raisin one...?
 
Interesting....

Anyone know if Raisin will also be accepting deposits from accounts held by corporates ?
 
Can people stop comparing headline UK rates with Irish rates.
Nearly all UK variable rates are step-up rates.
The 2.19% rate Brendan quotes above relates to the first 3 years of the mortgage, after which it reverts to the SVR which is currently 4.2%.

These UK mortgages are similar to the ARMS which were so dangerous in the US Subprime crisis. It's all well and good if property prices don't drop but as soon as you can't refinance on the 3 year rate reset date you're stuck with the SVR.
 
username123 said:
Will the Raisin savings be covered under Irish guarantee scheme? I know it said the Aib German one would be, but the Raisin one...?
Click to expand...

Raisin is a market. Multiple banks in multiple EU countries offer deposit rates. You are protected by the insurance scheme in the country that the bank, who offers the rate, operates.

At least 100k would be protected.
 
CiaranT said:
Raisin is a market. Multiple banks in multiple EU countries offer deposit rates. You are protected by the insurance scheme in the country that the bank, who offers the rate, operates.

At least 100k would be protected.
Click to expand...

This could even be safer, as you could have access to several different €100,000 limits and the risk in the different banks might not be well correlated.
 
This has the potential to be very good. Anything that adds a bit of competition to the Irish market is a good thing. I really hope the likes of this, Number 26, Revolut, etc. put proper pressure on them and cause them to compete and offer better services.
 
Yeah, emerging pan European banking competition and online-only banking competition is great news for consumers.
 
Will Revenue's Dirt Exemption status be available on these accounts I wonder.
 
Andy836 said:
Can people stop comparing headline UK rates with Irish rates.
Nearly all UK variable rates are step-up rates.
The 2.19% rate Brendan quotes above relates to the first 3 years of the mortgage, after which it reverts to the SVR which is currently 4.2%.
Click to expand...

Hi Andy

The comparison is entirely appropriate.

In the UK there is competition. There is an active switcher market.

If someone takes out a variable rate of 2.19% today, they get that "discounted" rate for three years. That is a lot better than the Irish variable rate. After three years, borrowers tell their lender that they are going to switch and so they get the next three year deal.

Using the SVR is misleading. It's like comparing the rack rates on hotels. Only idiots pay them.

Irish borrowers can't get any decent deals at all.

And, of course, AIB isn't particularly competitive in the UK.

They can get lifetime trackers from First Direct at the following rates. And cheaper rates, if they agree to an arrangement fee.

upload_2016-1-20_21-17-55.png
 
Brendan Burgess said:
Using the SVR is misleading. It's like comparing the rack rates on hotels. Only idiots pay them.

View attachment 1043
Click to expand...

I don't think that's fair Brendan. There are thousands of borrowers paying SVRs that are simply not in a position to switch lenders - they are not all idiots.

In any event, I've made the point before that the rate charged on all outstanding variable rate mortgages (including trackers) in Ireland is almost exactly the median rate on all outstanding variable rate mortgages across the EU as a whole. There are plenty of borrowers continuing to avail of great deals in the Irish mortgage market.

Anyway, I guess this is all way off topic...
 
There are 12 banks in the Raisin marketplace at launch.

  • AIB. Irish guarantee.
  • Alior Bank. Polish Bank. 27 billion in deposits, 8,000 workers, 831 branches. More here (Google translation required). Polish guarantee.
  • Bulgarian American Credit Bank. Small Bulgarian bank. More [broken link removed]. Bulgarian guarantee.
  • Banca Sistema. Small Italian bank. More here and here. Italian guarantee.
  • BN Bank. Mid sized Norwegian bank. More here. Norwegian guarantee.
  • FiBank. Small Bulgarian bank. More here. Bulgarian guarantee.
  • First Save. Small UK bank, owned by a larger Nigerian bank. More here. UK guarantee.
  • Grenke. Mid sized German bank. More here. German guarantee.
  • Hansetic Bank. Small German bank. More here. German guarantee.
  • J&T Bank. Small Czech bank. More here. Czech guarantee.
  • Podravska Bank. Small Croatian bank. More (Google translation required). Croatian guarantee.
  • Novo Banco. Portuguese bank. Recently bailed-out by bond holders. WSJ article here. Portuguese guarantee.

Not exactly a list of strong banks.

I am not sure I would put money in a Bulgarian bank or a recently bailed out Portuguese bank.

Thoughts?
 
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Not instilling much confidence would be my immediate reaction. Nigerian bank?!
 
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