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



## Lightning (19 Jan 2016)

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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## Brendan Burgess (19 Jan 2016)

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% 







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

Brendan


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## Brendan Burgess (19 Jan 2016)

I thought it would be useful to compare the rates offered by AIB in the Republic with Northern Ireland


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## nephster (19 Jan 2016)

Presumably, the deposits with Raisin would be subject to DIRT for Irish-resident savers?


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## Lightning (19 Jan 2016)

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?



Yes, the interest would be subject to DIRT but DIRT would not be deducted at source.


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## Lightning (19 Jan 2016)

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!


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## Boyd (19 Jan 2016)

Will the Raisin savings be covered under Irish guarantee scheme? I know it said the Aib German one would be, but the Raisin one...?


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## MrEarl (19 Jan 2016)

Interesting....

Anyone know if Raisin will also be accepting deposits from accounts held by corporates ?


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## Andy836 (19 Jan 2016)

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.


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## Lightning (19 Jan 2016)

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...?



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.


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## Lightning (19 Jan 2016)

MrEarl said:


> Interesting....
> 
> Anyone know if Raisin will also be accepting deposits from accounts held by corporates ?



Appears to be personal deposits only.


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## ardmacha (19 Jan 2016)

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.



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.


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## Connard (20 Jan 2016)

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.


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## Lightning (20 Jan 2016)

Yeah, emerging pan European banking competition and online-only banking competition is great news for consumers.


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## pudds (20 Jan 2016)

Will Revenue's Dirt Exemption status be available on these accounts I wonder.


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## Lightning (20 Jan 2016)

pudds said:


> Will Revenue's Dirt Exemption status be available on these accounts I wonder.



You will need to declare your deposit interest to the Revenue.


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## Brendan Burgess (20 Jan 2016)

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%.



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.


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## Sarenco (20 Jan 2016)

Brendan Burgess said:


> Using the SVR is misleading. It's like comparing the rack rates on hotels.  Only idiots pay them.
> 
> View attachment 1043



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...


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## Lightning (22 Jan 2016)

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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## Boyd (22 Jan 2016)

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


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## ardmacha (22 Jan 2016)

The Czechs have a debt/GDP ratio of 45% or so and can print their own currency. This gives them a decent capacity to stand over their guarantee, although I don't know much about their banking system. 

Grenke bank is rated BBB+ by S&P, similar to Commerzbank and Deutsche Bank. Sistema are BB, ALior is much the same.


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## Lightning (23 Jan 2016)

username123 said:


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



A good article on who First Save are is here. 



> *Who and what is FirstSave?*
> 
> FirstSave is part of First Bank of Nigeria plc – one of Nigeria's largest banks and with headquarters in Lagos.
> 
> ...


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## alwaysonit (4 Feb 2016)

CiaranT said:


> There are 12 banks in the Raisin marketplace at launch.
> 
> 
> AIB. Irish guarantee.
> ...



This is interesting. Are you just going by the credit ratings for each company or do you know know much about the guarantee about all of the countries? Czech Rep have a higher credit rating than Ireland.


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## Lightning (4 Feb 2016)

Fair point that the Czech Rep guarantee is backed by a government with a high credit rating. Concern came from how small a bank J&T is and more broadly about how some, but not all, of the banks that Raisin have partnered with do not seem to be the strongest bunch of banks.


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## MrEarl (5 Feb 2016)

CiaranT said:


> .... and more broadly about how some, but not all, of the banks that Raisin have partnered with do not seem to be the strongest bunch of banks.



One of the key reasons they offer competitive rates, don't you think ?  Ultimately, this is risk versues reward, strong more well established banks are deemed lower risk, so don't have to pay the same rate for their cash deposits etc.  I think you know where I'm going.....


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## Lightning (18 Feb 2016)

Raisin have now launched in Austria. 

Raisin say they will launch across Europe, via their English language site, "in just a few weeks". Higher rates, from a mixed bag of European banks, on the way.


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## Lightning (18 Mar 2016)

Raisin are apparently very close to launch. 

13th bank has signed up to their marketplace. 

Raisin, in Germany and Austria, are now offering instant access products as well as term deposit products.


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