Depositing with raisin to non euro bank

S

stoves1

Registered User
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If i deposit Euros to a non euro currency bank with raisin ie Swedish or Norwegian does my money earn interest in euros and when i decide to take out my savings either a term or deposit account is it in Euros or is my initial euro lodgement subject to the vageries of currency fluctuation hope question is understood, thanks for answers
 
Check what the account details say but I wasn't aware that Raisin offered non-euro denominated deposits.

But it should be the case that Euro denominated deposits from a bank in either the euro area are - our further afield - will earn your euros.
 
Based on the raisin.ie website, deposit accounts with banks from outside the eurozone (e.g. Sweden (Nordax, Klarna, TF Bank), Morrow Bank ASA (Denmark), Alior Bank (Poland) etc) are EUR denominated accounts, and so interest earned will be calculated and paid in Eur. You can see this by looking at each bank on the raisin website- the account/deposit currency is shown as EUR. This should ensure that there is no exchnge rate risk/fluctuation in relation to the deposit and/or interest.

The only time that exchange rate comes into play appears to be in the calculation of the amount payable in the event of a payout under the national DGS.
 
Many thanks for replies i just wanted to check before i deposit funds, i have opened an account with Raisin via app and looks good
 
Just also be aware that Norwegian banks are also non-EU. So a different rate of DIRT applies.
 

What DIRT rate is applicable?

Deposit Interest Retention Tax is deducted from the interest paid on all deposit accounts held by Irish-resident individuals.
www.revenue.ie

Interest from accounts in other European Union (EU) Member States and from non-EU countries​

If you receive interest from an account in another EU Member State, you must pay the current DIRT rate on the interest income. You must include the details of this on your annual tax return. The income will be subject to a higher rate of 40% tax if it is not returned on time.

Deposit interest from non-EU countries will be taxed at the current DIRT rate if you:

  • are a standard rate taxpayer
  • and
  • have made a timely return.
If you are a higher rate taxpayer or you have not made a timely return, a DIRT rate of 40% will apply.
 
The guaranteed limit is SEK 1,050,000 per account holder, per bank according to the Raisin website. This would be € 92,588 today. So if I save that amount with Klarna Bank and the limit falls to € 80,000 through currency fluctuation I would lose money in the event of a payout under the national DGS. But if I have saved € 70,000 I will get this back plus interest. Is this correct?
 
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