Non instant access savings?

M

MichaelR

Registered User
Messages
19
Hello,

I am looking for a savings product (no risk, deposit protection insurance from an EU country). There is an excellent guide on this forum, but all the good products in it are "instant access".

I am worried about a password and/or phone being stolen. In something like N26, unless I am able to change the password/unpair the phone quickly, the thief might get full access to my savings. (I would not trust the phone lock as the only protection).

I prefer something like a notice account, or some other form of non-instant access, so that whatever a thief gets off me (including an unlocked phone) would not give access to my savings. But the guide does not list any with a decent interest rate.

Are such products available and if so, which ones? Thanks!
 
Would a fixed rate product do the job?

Something like raisin might work. It's browser rather than app based - so not tied to a single device. It has 2FA and withdrawals can only be made to designed accounts

below are the best buys for fixed rate products

Best Buy - Term Deposits (Fixed Lump Sum Savings)

Rates are frequently updated. Information last changed: 4 April 2024. Highest Term Deposit Rates 1 Year - BluOr (Direct) and A&G via Raisin - 3.50% 2 Years - BluOr (Direct) and TFBank via Raisin - 3.40% 3 Years - BluOr (Direct) - 3.30% 4 Years - TFBank via Raisin Bank - 3.25% 5 Years -...
www.askaboutmoney.com
 
I'd prefer to be able to access at relatively short notice (a week is ok but not a year), but this would be for emergencies, so losing interest for early access would be fine.

Thanks for pointing me to Raisin! Morrow looks good.
 
Reviews of Raisin make me question whether it is a good idea. They don't seem to be strong in tech support?

Revolut are excellent in tech support, but I don't understand the level of risk in their MMF product, the tax eats into the interest - and, most importantly, access to my phone lets anyone clear out all my money.
 
MichaelR said:
Reviews of Raisin make me question whether it is a good idea. They don't seem to be strong in tech support?

Revolut are excellent in tech support, but I don't understand the level of risk in their MMF product, the tax eats into the interest - and, most importantly, access to my phone lets anyone clear out all my money.
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I am thinking of buying a very cheap android phone and leaving it at home with all my banking apps on it, just in case I lose it or its stolen.
I have all my savings in N26 ( biometric I'd log in) and 4 digit pin for transfers, Bunq ( 6 digit pin) Raisin ( password) and text verification code.
My phone has is a Samsung A53 with pattern and biometric access.
 
Phone with apps is one thing, but the phone number stays with the stolen phone :( And I don't think Revolut, N26 etc allow two accounts on two phone numbers for the same person, not to mention the need to pay for another SIM. Also what would you use Bunq for if you already have Revolut and N26, if no secret? I am getting N26 for travel, have Revolut for quick transfers and <18
 
How about Trade Republic? You can't beat the interest rate - and you can only withdraw to a registered "reference account" which must be in your name.
Admittedly, someone can add a new registered reference account by transferring in to your Trade Republic one - however it has to be in the same name - which does add quite a bit of security.

Like you, I'm not comfortable with having main banking apps on my phone - so those are on an old tablet that lives at home.
My phone only has Revolut/N26 - which is enough for general use / travel and provides a physical air gap.
 
Would you consider State Savings ? These are a direct, unconditional obligation of the Irish Government, up to the to total amount invested. This guarantee is superior to the DGS and if you invest in the full range of products the amount guaranteed can be quite significant. While the majority of the products are term products, all investments can be cashed-in at any time. The returns aren't stellar, however they are exempt from DIRT and when you factor that in they are respectable enough given that they risk free (apart from the inflation risk). If you avoid opening an online account and operate using the paper certificates only they should satisfy your requirements around avoiding phone/password risk.
 
One question I have about State Savings is what happens if I cash out before the date is up. The best rate is in the 10 year bond, let's say I go into that, then in 3 years I want the money, what kind of interest do I retain? And how long does it realistically take to get the money out early?

EDIT. I finally found their well-hidden link as to the interest accruing each year. The trick is that early withdrawal is allowed but you lose a lot in interest. One has to go to the product, go to Interest rates and Returns, then find the very small link to "show yearly returns".
 
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MichaelR said:
One question I have about State Savings is what happens if I cash out before the date is up. The best rate is in the 10 year bond, let's say I go into that, then in 3 years I want the money, what kind of interest do I retain? And how long does it realistically take to get the money out early?

In general, State Savings doers look like what I want. Kinda kicking myself I did not know about them earlier.
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The interest payments are loaded towards the end of the term, i.e. structured so as to favour investors who leave their money in for the full 10 years. You can early withdraw all or part of your savings bond/cert cash. I've done this twice in the past six months - both joint accounts so required postal application. Pretty straightforward and in each case the money was in my bank account within ten days.

I've had State Savings accounts for years. The great thing is you can leave your money there knowing it's about as safe as it can be, and if you want it it's easy enough ti access.

I have some cash in Trade Republic also, for even faster access - can't say I have quite the same confidence, but no problems transferring in or out so far.
 
What about the ptsb 3% fixed term? Works out better than the 3 or 5 year state savings I think?
 
MichaelR said:
One question I have about State Savings is what happens if I cash out before the date is up. The best rate is in the 10 year bond, let's say I go into that, then in 3 years I want the money, what kind of interest do I retain? And how long does it realistically take to get the money out early?

EDIT. I finally found their well-hidden link as to the interest accruing each year. The trick is that early withdrawal is allowed but you lose a lot in interest. One has to go to the product, go to Interest rates and Returns, then find the very small link to "show yearly returns".
Click to expand...
State Savings Term products are intended to hold your money for the full term. The fact you can withdraw early without penalty (other than forgoing the higher interest rates offered for the later years) is a concession. The way to look at is you should only invest in the product if you are very/extremely likely to remain for the full term, and only likely to withdraw early in an emergency. If you are likely to withdraw early, the product is not for you. So choose the term that is most likely to be fulfilled, 3, 5 or 10 years. Or opt for Prize Bonds. Or another product from another provider.

Regarding the time it takes to receive your money when you cash in your bonds, I wrote about this previously here. I cashed in (early) 6 bonds, online, all encashments requested at the same time (within the space of 10 mins). The money for two landed in my account 6 days later, the next two took 11 days and the final two took 17 days after a lot of chasing. There was no reason for the different times taken other than State Savings sloppy and inconsistent handling of the requests.

In comparing the rates on offer from State Savings with other institutions, remember that they are exempt from DIRT.
 
Mousehelp said:
What about the ptsb 3% fixed term? Works out better than the 3 or 5 year state savings I think?
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The term for the PTSB 3% fixed term product is 3 years. Bear in mind the T&Cs state
  • If a withdrawal is required before account maturity an early withdrawal charge will apply.
Typical of the customer oriented outfit that PTSB is, they don't tell you what the early withdrawal charge is or how it is calculated.

AIB have a 2 year fixed term product offering 3%. Their T&Cs require you to die in order to withdraw early.
 
Freelance said:
The term for the PTSB 3% fixed term product is 3 years. Bear in mind the T&Cs state
  • If a withdrawal is required before account maturity an early withdrawal charge will apply.
Typical of the customer oriented outfit that PTSB is, they don't tell you what the early withdrawal charge is or how it is calculated.

AIB have a 2 year fixed term product offering 3%. Their T&Cs require you to die in order to withdraw early.
Click to expand...
Also think I need to be an AIB current account customer which I am not. Another t&c
 
Freelance said:
The term for the PTSB 3% fixed term product is 3 years. Bear in mind the T&Cs state
  • If a withdrawal is required before account maturity an early withdrawal charge will apply.
Typical of the customer oriented outfit that PTSB is, they don't tell you what the early withdrawal charge is or how it is calculated.

AIB have a 2 year fixed term product offering 3%. Their T&Cs require you to die in order to withdraw early.
Click to expand...
@Freelance I was given some method when I opened the 3% account, can't find my own account opening page but found this online which I think is the same (someone else can work out an example though!):

Fixed Term Deposits. The early withdrawal charge is (1% x Amount withdrawn x Remaining term) ÷ 365
Or an amount equal to the funding loss (if applicable), whichever is the greater. A minimum of €20 applies.
Funding Loss is calculated using the formula (AxTxD) ÷ 365 where: A = the amount withdrawn, T = the remaining term, D = the difference in the prevailing market rate of interest for a term equivalent to the period remaining and the rate applicable at the date of opening the account.
 
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