3.5% options on Raisin

[dallin]

I'm looking at the two top rates on raisin bank to invest most of my savings.

The first 3.5% rate is 1 year fixed and the other one is 3.5% 3 month fixed.

I do not need access to this money in any of these terms. I feel I'm financially illiterate, and would Iike some advice.

The 3 month option allows you to either withdraw interest at 3 months, it also allows to prolong the investment and you can reinvest your matured value.

Is there any benefits to the year option in this case ?

Maybe for taxation at the end of the year or fees ?

Any advice about this would be kindly appreciated, and If anyone wants to give a referral.

 

[gardenlady]

@dallin If rates start dropping (and it looks like they probably will ) then it's better to have locked in the higher rate that's available now for longer.

 

[doublea0165]

@gardenlady This is what I have done

 

[dallin]

@doublea0165 Did you go for 3.5% at one year or 3.4% at 2 years ?

 

[doublea0165]

@dallin The two year and also a five year deposit .

 

[dallin]

@gardenlady Thank you, that's very important Info

 

[catholic_with_a_mic]

@dallin I have a Raisin account and have savings split between a demand deposit account and a term deposit, demand deposit is lower interest but the interest is added to the account at the start of the following month, so basically getting interest on the interest from the second month onwards. I opted for the three month term deposit so interest will be at the three month stage.
I also have a Trade Republic account easier to open and daily interest is displayed in the app and added to the savings account every month. There is a maximum investment of 50,000 here. You are liable for your own tax returns on the interest for all of the above. Some of the savings products with Raisin also have additional taxes, i.e. withholding tax, a form needs to be completed, scanned and emailed back to Raisin to avoid this tax being deducted from your account.

 

[ldh]

@catholic_with_a_mic Have you had any saving deposits paid back yet? Invested a small amount first and making sure I get it back all okay before trying more but seems rates are going down now

 

[catholic_with_a_mic]

@ldh Only started investing in February so nothing paid back yet but haven't requested any.

 

[hollyoyo]

@dallin I have an account with Raisin.ie paying 3.5% on 3month term with BFF, Which is Italian. . I find their customer service excellent, very responsive and easy to deal with. I am reassured by the fact I'm dealing with European registered banks with the benefit of the €100,000 deposit Guarantee Scheme

If anybody would like a referral refer a friend bonus of €50 for opening with Raisin then please send me a chat.

I also have an N26 account. They pay 2.8% on their free account and 4% on their Metal account. I find their customer service poor. The chat is very protracted. You often don't have questions answered.
If anybody would like a €20 refer a friend for N26 let me know. To get this you must order a physical Mastercard from N26.

 

[hephzibah7]

@dallin I'd personally go with Trade Republic which offers 4% or N26 for amounts over 50k which also offers 4% (but requires an account for ~€13/month).

https://traderepublic.com/en-ie#spend

https://n26.com/en-eu/savings-account

 

[dallin]

@hephzibah7 I have heard of lots of transactions going missing. Is it really worth the hassle for an extra .5 per year ?

 

[hollyoyo]

@hephzibah7 Your money in trade republic is put in a trust account in OTHER banks. This just seems complicated as regards Deposit Guarantee

 

[danyyyy101]

@hephzibah7 Trade Republic only pay 4% on the first 50k.

Raisin lets you sink 100k per partner bank, each with a 100k deposit guarantee.

That probably doesn't matter to most people, but I thought it worth mentioning.

 

[hamiido]

@danyyyy101 Trading212 4.2%

 

[manju13]

@hamiido That’s a money market fund so taxed at 41%

 

[hamiido]

@manju13 Nope

 

[manju13]

@hamiido Oh someone on here said it was so I took their word for it. Is it just a regular deposit account then?

 

[hamiido]

@manju13 They can hold them in MMFs for sure but right now it shows you in the app how much is held in bank V MMF and 100% of mine is held in bank at the minute

 

[doublea0165]

@dallin Get the best interest rate you can for as long as you can via Raisin, Interest rates will be coming down, So lock in a good rate.