Raisin Instant Access Accounts

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Freelance

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e-mail this afternoon. Raisin offering the following:
  • Demand Deposit Account with Norwegian Bank Morrow
  • €100k Norwegian Bank ́s Guarantee Fund
  • 3% variable, 3.03% AER (interest payable quarterly)
  • Minimum / Maximum Amount is €1/€100,000
  • No withholding tax
  • Demand Account, no notice
"Offer Details" and "Product Information Sheet" available here:

https://www.raisin.ie/savings-accounts/demand-deposit-accounts/
 
One point to bear in mind is withdrawals.

The "Product Information Sheet" says "Your funds are available within 2 banking days without notice period." So a withdrawal means that the money will transfer from Bank Morrow to your Raisin cash account in two days, and you can then use a SEPA transfer from Raisin to your ultimate destination. This is in contrast to other foreign bank highish interest rate offerings (e.g. BUNQ) where the withdrawal is immediate via SEPA (realistically next day). This may or may not be an issue.
 
It's good. It is however a pity that they only pay out the interest earned every 3 months. It would be great if they paid it out every month like most of the neo banks.
 
This is game changer
 
Sounds good alright.
I've two concerns (probably my lack of understanding), since this is a Norway-based bank:
1. Is there a currency risk, or does the fact that it's in Euros mean it's ok?
2. Is there a higher risk to deposits, given that Norway are not in the Eurozone, or even the EU?
 
100k guarantee applies
 
messyleo said:
No difference to the AER whatsoever
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No difference to the AER, but being that interest is capitalised only each quarter, it means those with less than 100K will come out with less than with other banks that allow capitalisation and reinvestment of interest on a monthly basis.
 
The difference is interest on the interest for 1 or 2 months, hardly makes much of a difference,
Take 100k, interest is 3k a year, 250 a month, so if capitalised monthly then you would get 250 @3% for an extra 2 months and then 250 @ 3% for 1 month, your talking less than €2.50 for the above or €10 over a year, maybe my maths is not 100% correct, but minimal in overall terms.
 
Yes but my understanding is the AER takes account of that, so an account with an AAER of 3.03 (interest applied monthly) is the same as an account with an AER of 3.03 (interest added daily). It is still 3.03, so if you only compare AERs across products it is not relevant when the interest is applied as such
 
irishfinanceguy said:
This is game changer
Click to expand...
Is it ? In what way ?

It's marginally better than the variable rate offered by BUNQ but the account has a two step withdrawal process and a two day delay in respect of withdrawals and is exclusively a depository, whereas BUNQ offers full service banking and one step SEPA withdrawals.

It has its place, but hardly game changing.
 
Bunq didnt work for me
 
As Morrow is based in Norway, is it correct to assume the DIRT is 40% for higher rate taxpayers, or does the fact it is through Raisin mean it would be 33%?

 
Corola said:
Raisin is just an intermediary, Norway is outside the EU so it's non-EU deposit interest.
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Good point I think a lot of us assume states like Sweden, Finland and Denmark are fully invested in the EU. Denmark opted out from the Euro.
 
Flying Dutchman said:
As Morrow is based in Norway, is it correct to assume the DIRT is 40% for higher rate taxpayers, or does the fact it is through Raisin mean it would be 33%?

View attachment 8465
Click to expand...
Good catch! I thought it might make some difference them being non-EU but I hadn't thought of checking the DIRT rules.
This means that (for a higher rate taxpayer) the pre-DIRT interest rate given (3.03%) is actually equivalent to an EU bank offering a pre-DIRT rate of 2.71%
 
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