Irish households are still leaving billions of euro in low-interest accounts. But Raisin is hoping to change that.
Irish households continue to leave vast sums of money sitting on deposit.
According to the Central Bank of Ireland, households here have over €165 billion on deposit with the main Irish banks — a record amount. Yet worryingly, most of it is sitting idle in current or instant-access accounts where it’s earning almost no interest.
It’s hard to pinpoint one exact reason why Irish savers are so slow to chase higher returns. Many seem to strongly value easy access to their money and are therefore reluctant to lock it away in fixed-term accounts, even though the returns are often far better.
With this in mind, Raisin, the online platform for savings products across Europe, has launched its new Starter Account, designed to help savers earn more on their money without long-term commitments.
A new option for cautious savers
The Raisin Starter Account offers new customers a fixed rate of 3.10% AER for three months on deposits between €1 and €100,000. There are no fees or restrictions, and you can top up or withdraw funds at any time during the three-month period. Your savings are also fully protected by the German deposit guarantee scheme.
So if you had €30,000 in savings, even if you have plans for the money shortly, you could put it on deposit with Raisin, and get just over €300 in interest before tax after three months. While it may not seem like a huge sum of money, it's more than you'll get by leaving you're money in a current account or most instand access savings accounts.
When the three months are up, you can either move your money into another savings product with Raisin or withdraw it back to your regular bank account.
Irish households are sitting on vast sums of cash that could be working much harder. By moving even a portion of savings from instant-access accounts to short-term deposits, people can significantly boost their returns without losing access to their money. The Raisin Starter Account is an excellent way to start, a good halfway house that shows how much more you can earn from fixed deposits without long commitments.
Eoghan O’Hara, Country Manager at Raisin Ireland
More choice for savers
There’s been plenty of movement in the savings market in recent weeks. Austrian-owned MoCo Bank, which entered the Irish mortgage market in 2023, has launched a new savings product offering 2% interest, while Avant Money is preparing to launch a new range of savings accounts soon.
Now, Raisin’s market-leading rate adds even more choice for savers who want both a competitive return and easy access to their funds.
Inflation is eating into savings
No one needs reminding that inflation has soared in recent years. It currently stands at 2.7%, and the cumulative rate over the past five years is close to 25%.This means €100 of your savings in 2020 is worth only about €75 in today's money.
This means the real value of people’s savings is being steadily eroded — making it more important than ever for people to put their money to work.
Compare and earn more
The good news is that savers now have more options than ever before. And as Raisin’s new product shows, you don’t have to tie up your money for years to get a decent return.
You can compare interest rates across all the main providers in Ireland using bonkers.ie’s savings account comparison service to find the best option for your needs.
