# Deposit interest rates rising again soon?



## TheJackal (28 Oct 2022)

With the recent Central Bank rate increases, when should we expect Irish banks to start offering higher interest rates for savings?


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## NoRegretsCoyote (28 Oct 2022)

I have no insight, but Irish banks are swimming in deposits

As of June BoI total customer deposits from Ireland were €68bn but BoI had €35 billion parked at the Central Bank of Ireland due to inability to lend the rest.


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## tomdublin (9 Nov 2022)

Also the gruelling lack of competition in Irish banking is showing its consequences here.  On the Continent banks are now paying up to around 3% on one year fixed-term deposits.  In Ireland a typical deposit rate is 0.05%.


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## noproblem (9 Nov 2022)

Where on the Continent of Europe is offering 3% on deposits. I know in the Rep of Cyprus you'll be given 0.5 % like Ireland. Turkey you'll get from 12% to 17.5% but you better have your Kamikaze head in place to avail of that rate.


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## tomdublin (9 Nov 2022)

noproblem said:


> Where on the Continent of Europe is offering 3% on deposits. I know in the Rep of Cyprus you'll be given 0.5 % like Ireland. Turkey you'll get from 12% to 17.5% but you better have your Kamikaze head in place to avail of that rate.


OK not quite 3% but close enough..


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## tomdublin (9 Nov 2022)

tomdublin said:


> OK not quite 3% but close enough..


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## jim (9 Nov 2022)

tomdublin said:


> Also the gruelling lack of competition in Irish banking is showing its consequences here.  On the Continent banks are now paying up to around 3% on one year fixed-term deposits.  In Ireland a typical deposit rate is 0.05%.


Wow thats a good rate. Any link?

Highest i have seen for 1 yr is 2.55%


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## ClubMan (9 Nov 2022)

jim said:


> Wow thats a good rate. Any link?
> 
> Highest i have seen for 1 yr is 2.55%


Raisin Bank.


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## Look ahead (9 Nov 2022)

I have been with raisin bank for last couple years, it's easy to set up the account and I have had good experience with them.


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## jim (9 Nov 2022)

Look ahead said:


> I have been with raisin bank for last couple years, it's easy to set up the account and I have had good experience with them.


Me2


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## noproblem (9 Nov 2022)

tomdublin said:


> OK not quite 3% but close enough..


Thank you for that.
Interesting indeed and looking into it. There's 3.15% over 5 years available in France with the €100k guarantee. 2.55% for 1 year, 2 years @ 2.87% and only pay the tax in your own/home country.

Jim and Lookahead, do you mind me asking which country did you guys go with?


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## jim (9 Nov 2022)

noproblem said:


> Thank you for that.
> Interesting indeed and looking into it. There's 3.15% over 5 years available in France with the €100k guarantee. 2.55% for 1 year, 2 years @ 2.87% and only pay the tax in your own/home country.
> 
> Jim and Lookahead, do you mind me asking which country did you guys go with?


Portuguese bank called gasto something or other.

My 3rd year deposited with them. Happy with it. Just makes little since to leave money deposited in Bank here earning nout.


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## noproblem (9 Nov 2022)

jim said:


> Portuguese bank called gasto something or other.
> 
> My 3rd year deposited with them. Happy with it. Just makes little since to leave money deposited in Bank here earning nout.


Thanks Jim, have lump sum maturing and looking at the 5 year 3.15% with Younited Bank France. Think I'll register tomorrow and see where it takes me. Appreciate your reply.


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## Look ahead (10 Nov 2022)

jim said:


> Portuguese bank called gasto something or other.
> 
> My 3rd year deposited with them. Happy with it. Just makes little since to leave money deposited in Bank here earning nout.


Important to check the credit rating of some of those banks. You are covered with deposit guarantee but who knows how long you be waiting to get deposits back were any of them to go under.
Also be aware some of them deduct a 10% holding tax and they will require tax clearance certificate  from revenue here.


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## aiddan (10 Nov 2022)

Is there any difficulty / additional tax payable on the Irish side because the bank is not Ireland based? Or is it in effect the same as opening an account in Ireland?


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## Look ahead (10 Nov 2022)

You have to declare the interest on your tax return minnus the witholding tax already paid. 






						Banco Português de Gestão » Interest rates up to 2.91% | Raisin Bank
					

Banco Português de Gestão interest rates up to 2.91% with Raisin Bank. ✅ Apply for the Banco Português de Gestão savings account today!




					www.raisin.ie


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## Look ahead (10 Nov 2022)

noproblem said:


> Thanks Jim, have lump sum maturing and looking at the 5 year 3.15% with Younited Bank France. Think I'll register tomorrow and see where it takes me. Appreciate your reply.


I was with BluOr bank in Latvia, they had great rates up until this year. I didn't renew with them partly because of the onset of war in Ukraine but I'm now considering reinvesting with Raisin. I read somewhere the Portuguese bank credit rating is not great which is why the interest rate is high but if anyone can confirm that, I be grateful


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## aiddan (10 Nov 2022)

Look ahead said:


> You have to declare the interest on your tax return minnus the witholding tax already paid.
> 
> 
> 
> ...



Thanks for that. 

So just so I am clear - interest rate for 1 year is 2.55% - return on E100k invested would be as follows:
Interest received - E2550
Less Witholding Tax (28%) - E714
Less DIRT (33%) - E605.88
Net return - E1,230.12 or 1.23% (E23.65/wk)

Does my calculation look right?


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## jim (10 Nov 2022)

aiddan said:


> Thanks for that.
> 
> So just so I am clear - interest rate for 1 year is 2.55% - return on E100k invested would be as follows:
> Interest received - E2550
> ...


I think that looks broadly correct


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## irbx (10 Nov 2022)

aiddan said:


> Thanks for that.
> 
> So just so I am clear - interest rate for 1 year is 2.55% - return on E100k invested would be as follows:
> Interest received - E2550
> ...


Does not look right to me. But I not tax advisor.  
Should it not be 33% of the total interest of 2550.  So 841.50 dirt tax due.  If their tax agreement between Ireland and the other country you maybe allow to claim credit for tax already retained by the bank.

If their is you get a credit of 714 leaving a balance 127 euro owned to tax man in Ireland.


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## ryaner (10 Nov 2022)

You should be able to get a credit against the dirt for the withholding tax. More details on https://www.raisin.ie/tax/
There is information there on how to reduce the withholding tax for Portugal too.


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## CuriousCork (10 Nov 2022)

Irish banks are a joke for deposits. We have moved cash to a French bank, who pay about 1.5%. It is in the Eurzone, so no exchange risk.






						Your savings and investments - Crédit Mutuel
					






					www.creditmutuel.fr


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## noproblem (10 Nov 2022)

Going through the process at the moment. Filled in all the name/address, etc,  but being left to wait a long time for the video identification. (continuing to do so) Annoying to say the least. Yes I have my tax clearance from revenue, etc and everything's above board. Just need to get a bit of decent interest for some money without hassle of setting up to buy funds from advisers, etc and all that's connected with that + all the commissions and everything else.


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## jim (10 Nov 2022)

ryaner said:


> You should be able to get a credit against the dirt for the withholding tax. More details on https://www.raisin.ie/tax/
> There is information there on how to reduce the withholding tax for Portugal too.


Is there much advantage to reducing portuguese witholding tax from 28 to 15% if the witheld tax is credited back anyway by Revenue when you submit tax return?


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## Look ahead (10 Nov 2022)

jim said:


> Is there much advantage to reducing portuguese witholding tax from 28 to 15% if the witheld tax is credited back anyway by Revenue when you submit tax return?


Not really


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## Look ahead (10 Nov 2022)

noproblem said:


> Going through the process at the moment. Filled in all the name/address, etc,  but being left to wait a long time for the video identification. (continuing to do so) Annoying to say the least. Yes I have my tax clearance from revenue, etc and everything's above board. Just need to get a bit of decent interest for some money without hassle of setting up to buy funds from advisers, etc and all that's connected with that + all the commissions and everything else.


It's a bit cumbersome but once you set up, whole process runs smoothly.
You get €100 free when you sign up too, just don't forget to apply for it 6 months after your first deposit. Some people forget about it.


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## Look ahead (10 Nov 2022)

CuriousCork said:


> Irish banks are a joke for deposits. We have moved cash to a French bank, who pay about 1.5%. It is in the Eurzone, so no exchange risk.
> 
> 
> 
> ...


How did you go about setting this up, I presume you need french bank account and what interest rate are you getting?


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## noproblem (10 Nov 2022)

Look ahead said:


> It's a bit cumbersome but once you set up, whole process runs smoothly.
> You get €100 free when you sign up too, just don't forget to apply for it 6 months after your first deposit. Some people forget about it.


Have now gotten as far as taking a photo front and back of passport, now awaiting the identification specialist to come online.  Grr!


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## Look ahead (10 Nov 2022)

noproblem said:


> Have now gotten as far as taking a photo front and back of passport, now awaiting the identification specialist to come online.  Grr!


You appear to be having great time


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## noproblem (10 Nov 2022)

Look ahead said:


> You appear to be having great time


Phew, you wouldn't believe it, just done. My wife has also completed hers. Good job we're retired. Now, I find out that AIB will only allow €10,000.00 per day transfers online. They say if I go into a branch in person with an IBAN and all details they will do the transfer. Thing is, where do I get the IBAN No? I've sent Raisin an email requesting some info, phoned them but that avenue cannot record any more calls so will await an email back from them. Can you tell me where I might get IBAN No, or can anyone else? Bloody hell, this is great fun but, hopefully well worth it in the end. For a sizeable deposit, there's thousands of Euro involved compared to what you'll get in Ireland.

Oh, anyone heard of a PRSI top up on all interest as well as Dirt each year that revenue has imposed on the interest earned from foreign bank deposits?


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## ClubMan (10 Nov 2022)

noproblem said:


> Can you tell me where I might get IBAN No, or can anyone else?





			https://help.raisin.ie/hc/en-gb/articles/6221016311698-How-do-I-fund-my-Raisin-Account-


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## noproblem (10 Nov 2022)

ClubMan said:


> https://help.raisin.ie/hc/en-gb/articles/6221016311698-How-do-I-fund-my-Raisin-Account-


Thank you ClubMan.
 Do I take it that Raisin a/c is like a wallet where I transfer the money into Raisin a/c first and then choose a deposit account to move it from there?


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## ClubMan (10 Nov 2022)

noproblem said:


> Thank you ClubMan.
> Do I take it that Raisin a/c is like a wallet where I transfer the money into Raisin a/c first and then choose a deposit account to move it from there?


Did you read the FAQs?


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## noproblem (10 Nov 2022)

ClubMan said:


> Did you read the FAQs?


Yes, I've done so now and don't blame you for being frustrated with me. I can be a numpty at times.  Going to have to go in person to my bank and I'll have my IBAN with me once the account is opened. I'll then transfer the funds. Thanks everyone here for the time and advice.


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## jim (10 Nov 2022)

noproblem said:


> Thank you ClubMan.
> Do I take it that Raisin a/c is like a wallet where I transfer the money into Raisin a/c first and then choose a deposit account to move it from there?


Yes thats how I understand it to work.


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## ClubMan (10 Nov 2022)

jim said:


> Yes thats how I understand it to work.


No need to guess.
The FAQs explain exactly how things work.


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## tomdublin (10 Nov 2022)

CuriousCork said:


> Irish banks are a joke for deposits. We have moved cash to a French bank, who pay about 1.5%. It is in the Eurzone, so no exchange risk.
> 
> 
> 
> ...


Irish banks now form an oligopoly.  Since oligopolies are inherently anti-competitive and exploitative banks should be regulated accordingly.  A regulator should set ceilings on charges & interest rates for mortgages and loans and floors for interest paid on deposits.


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## Look ahead (10 Nov 2022)

noproblem said:


> Thank you ClubMan.
> Do I take it that Raisin a/c is like a wallet where I transfer the money into Raisin a/c first and then choose a deposit account to move it from there?


That's correct.

I remember having to go into permanent tsb Bank to do the transfer as it was large amount. You will also have to wait for your password to arrive by post. Not  sure if this practise has changed now. 
Once transfer is done, your money will simple disappear  for day or two while it's been transferred to the partner bank. So dont fret if you can't see it online!


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## Look ahead (10 Nov 2022)

noproblem said:


> Yes, I've done so now and don't blame you for being frustrated with me. I can be a numpty at times.  Going to have to go in person to my bank and I'll have my IBAN with me once the account is opened. I'll then transfer the funds. Thanks everyone here for the time and advice.


You will also need to take your passport  with  you.


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## noproblem (10 Nov 2022)

Look ahead said:


> You will also need to take your passport  with  you.


Appreciate your help, thank you. It'll be next week before I get it done I'd imagine.


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## ATC110 (12 Nov 2022)

noproblem said:


> Appreciate your help, thank you. It'll be next week before I get it done I'd imagine.


@noproblem, can I ask which bank you ended up opening an account with and was it through Raisin?


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## noproblem (12 Nov 2022)

ATC110 said:


> @noproblem, can I ask which bank you ended up opening an account with and was it through Raisin?


Haven't it completed yet but will be going with YOUNITED and the 3 year 3.05% rate. Yes through Raisin


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## messyleo (12 Nov 2022)

Do PAYE tax payers pay 33% DIRT in their tax return or income tax at their marginal rate (40%) on the interest?

Younited looks a good option with the 3 years rate, or even the one year rate if you are reluctant to lock it down and want to see what happens ECB rates.
Does anyone have a referral code or is that not allowable on the forum? Thanks!


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## noproblem (12 Nov 2022)

gravitygirl said:


> Do PAYE tax payers pay 33% DIRT in their tax return or income tax at their marginal rate (40%) on the interest?
> 
> Younited looks a good option with the 3 years rate, or even the one year rate if you are reluctant to lock it down and want to see what happens ECB rates.
> Does anyone have a referral code or is that not allowable on the forum? Thanks!


Read through the post, it's all there.


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## jim (12 Nov 2022)

gravitygirl said:


> Do PAYE tax payers pay 33% DIRT in their tax return or income tax at their marginal rate (40%) on the interest?
> 
> Younited looks a good option with the 3 years rate, or even the one year rate if you are reluctant to lock it down and want to see what happens ECB rates.
> Does anyone have a referral code or is that not allowable on the forum? Thanks!


I could very happily refer you (or anyone else). Just PM me, as long as this site has no objection.


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## podgerodge (18 Nov 2022)

Look ahead said:


> You are covered with deposit guarantee but who knows how long you be waiting to get deposits back were any of them to go under.


Deposit guarantee schemes mandated to pay back within 10 working days


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## Steiny (22 Nov 2022)

Article about raisin is in the irish times today. They outline that you can claim back any withholding tax in the country's bank by claiming on a form 11. 

Cryptically though, the article says "Finally, revenue cautious that in certain circumstances, PRSI will also be chargeable on EU-sourced deposit interest". Anyone have any insight into this?


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## ClubMan (22 Nov 2022)

Steiny said:


> Cryptically though, the article says "Finally, revenue cautious that in certain circumstances, PRSI will also be chargeable on EU-sourced deposit interest". Anyone have any insight into this?


Raisin themselves also mention that and, further, don't discount the possibility that USC might also be due...





						Withholding tax in Ireland » [Documentation & Information 2022] | Raisin.ie
					

All about the withholding tax and country-specific documentation for each of the EU countries of our partner banks here! ➤ Find out more at Raisin.ie!




					www.raisin.ie
				





> As mentioned above, in certain circumstances, you may also be subject to PRSI on the interest you have received from the non-Irish deposit accounts. Foreign deposit interest income received should be exempt from USC.


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## Steiny (22 Nov 2022)

ClubMan said:


> Raisin themselves also mention that and, further, don't discount the possibility that USC might also be due...
> 
> 
> 
> ...


I think this may be covered in another thread but from what i see on revenue, usc is not payable but prsi is payable on unearned income over 5k for paye employees?


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## noproblem (22 Nov 2022)

For anyone thinking of setting up a Raisin a/c to invest in best EU bank deposit returns.
 Started the process on 10th Nov with Raisin/YOUNITED  and it completed on 20th. Fully up and in place. There is no withholding tax involved with this account. Dirt tax payable in Ireland and you'll get a certificate each year showing the interest earned. For any other taxes consult with your accountant or get yourself up to date with facts, etc.  Circumstances can differ for individuals.


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