► Try out Trade Republic: trade.re/Dan ► Try out Raisin Bank*: raisin-ie.pxf.io/75jyRV ► Try out Lightyear: lightyear.app.link/Y3zETUMKdDb I will update this pinned comment over time for any changes to the rates on offer by the above financial institutions
I don't particularly like Irish Banks nor do I like our taxation system. but withholding tax in a foreign country and declaring it Ireland may seem like a ball ache for Irish people when it may just be easier to go with an Irish Bank.. maybe a video on how to overcome this stressful obstacle would help us all out. thanks for all your videos too.. I always tune in very informative cheers
I agree. I save with AIB cause I don't need to declare tax so it's one less form to fill in, one less thing to think about. My mental peace is worth more than that extra 1% haha (I hope AIB doesn't read this though)
So I did the math and realized I would be losing about 600 euro per year in interest, so I came to the conclusion that for higher amounts it's very much worth it filling the form once a year.
Hi Dan/Malone, Can you clarify if the interest from Trade Republic is liable for DIRT, or is it something else, as it appears to be paid out from an MMF, so is it 41% as an investment fund, or even 52% given it could be seen as dividends? Many thanks, enjoying the content as always!
N26 now has a savings account option, with 2.8% p.a., and 4% for metal customers.. I think its a bit safer than Trade Republic (plus if you get metal, and have for example 30k, you would get 3.2% after deducting the metal annual fee, and get the metal benefits+insurance)
Thanks for sharing! It's still a sub-par rate in the current environment so I would still opt for TR personally. If you could define what you feel makes N26 "safer" than Trade Republic I'd be interested to hear it. TR deposits are protected under the DGS up to €100k. Seeing as the maximum deposit threshold for interest is €50k, it is, by definition, 100% safe and secure for those looking to avail of the maximum interest.
@@malone_financial do you know if for TR is considered a savings account for tax purposes? As in, when declaring your tax, ll the gains only be taxed the 33% of DIRT?
Great video overall! It was just what I needed to get starting, so big thanks for that!! On the other hand, I was coming with a new topic proposal if you feel it might be usefull for a future video, and that is If there are any cards to have with benefits, such as cash backs but more so with cripto rewards (sorry if you already covered it, I am still catching up with all your content!) Thanks again!
Great video! I’d be interested to hear your thoughts on saving with the likes of Revolut and Bunq as they too have quite competitive rates on certain plans. Many thanks 😊
Hi Malone, this was excellent, thank you for the comprehensive overview. When interest is received and withholding tax has been retained in the foreign country (example: Belgium), do I still need to declare my interest income and pay DIRT? that might feel like double taxing, what are your thoughts?
Thanks! Indeed you do. You would need to declare the gross amount of interest received and pay DIRT on this gross amount. A tax credit should be available for the withholding tax suffered. Do note that some accounts on Raisin, like Younited, levy no withholding tax due to local French tax law. That may offer an advantage with regard to certainty of outcome for tax in Ireland.
@@malone_financial Thanks for the video. Super helpful. Do Trade republic provide an account statement at the end of the year which can help me in finalising the interest gained in that year, and therefore help me when declaring DIRT?
Great informative video! thanks for sharing. One question that you may or may not know the answer to. Do you know if these non-traditional savings accounts would affect your ability to get a mortgage for buying a house?
Hey Malone thanks for the video. I'm wondering how compound interest works (or if it works) with TR once you have the cap of 50k? Does the 4% just keep getting calculated on the 50k and not the interest you accumulate on top of that? I'm probably answering my own question. Additionally, how does tax work if you are self-employed? If I gain say 3K in the year from interest, and my self-assessed income is above 5K, am I still paying 33% DIRT on that 3K, or do the gains have to be above 5K by themselves separate to income from working?
I regularly hear people complaining about the low interest rate that "their" bank is paying. I ask each of them how much shopping around they do, answer is always none, my reply is then why would "your" bank pay you more than they have to.
And the crazy part is that there’s great research from the U.S. that shows that banking customers are highly unlikely to swap from one bank to another, even when they can get a better rate. The banks know this which is why they exert control over deposit rates in most markets (especially in markets like Ireland where there’s little competition). Change will only come from challenging the status quo
People in Ireland generally don’t move banks for a better mortgage rate on a loan spanning decades, let alone €1,340 a year from a deposit account, assuming they even have €50k.
whats holding me back from putting money into raisin or trade Republic is declaring the dirt tax to revenue, I've no idea how this is done and can't find any video explaining
It’s so so easy. If you’re earning less than €5,000 in non-PAYE income you literally just enter the gross amount of interest in the relevant section on MyAccount. If it’s more than €5k then you file a Form 11. Please don’t let tax administration be the reason for not making your money work for you! Once you do it once it’ll make sense for life!
If i do a 1 year fixed with an bank with withholding tax will there be much / any difference with no withholding tax. What i'm trying to say you get a little more .15% in the withholding tax so is it better to go if its for 1 year. Thank
I have to say that customer service in Trade republic sucks. They refused to me to open account with them and don’t even want to give me a reason. I have emailed them but they just don’t respond. Is that normal for the company?
Hi Malone..great video..Raisin do not allow joint account, is there any implications in the event of account holder death for spouse and can spouse set up separate account .
I placed some savings away in a bank via Raisin for five years @ 3.25% AER, I am self-employed and file a form 11, Do I declare the interest gain yearly when filing my returns or after the account matures in five years, declaring the interest in total for the five years ?.
I can’t think of a good reason why there’d be an issue. If anything, it shows the bank that you’re being proactive with how you’re saving money. I suppose one consideration would be if you’re locking up cash with Raisin Bank for 2/3 years, the bank wouldn’t see that as cash that you have readily available (because it isn’t). But with something like Trade Republic it’s instantly accessible.
Is interest applied automatically or do you have to activate it or take any steps? I seen elsewhere that an activation step was required but don’t see it on my app now that I have deposited funds into cash.
You may be prompted with an activation button on Trade Republic and Lightyear. Just click it if you do! If you can’t find it then you’re likely receiving interest
Hey Malone, great content!! I have money deposit on Trade Republic account and they are paying 4% year, but they pay it into my account monthly, so, my question is: Does Trade Republic withhold tax fo DIRT or I have to declare this interest earnings on my tax return next year? If so this interest will be taxed as Income, please correct me if I'm wrong. Tks
Hey there, appreciate it! No, as I said in the video you need to declare the interest that you receive as part of your tax return. This income will be liable to DIRT at 33%
Thank you for a very informative video. For tax purposes, does Trade Republic provide end of your report on how much interest earned to file tax returns in Ireland? Thanks.
As a sole trader, I often need six months "runway" to cover expenses/salary should I not get work for an extended period of time. With any left over, can I take that money and put it in a high yeild savings account or can you only put savings from a personal account into a high yeild savings account?
It depends whether the platforms in question accept deposits from a business account. You’d be able to find that out via email or just stick to linking your personal bank account! Though I do see what you’re saying about availing of the higher rate for the runway cash, so it’s definitely worth looking into!
Are you talking about Trade Republic? If so, it doesn’t make a difference if the deposit is a lump sum or if it’s recurring deposits every month. Provided the account balance is below €50,000 total, it will be eligible for 4% interest. Any excess over €50k won’t
You can see how much interest you’ve been paid with all of the platforms. There should be a more than sufficient paper trail to furnish Revenue with evidence of the interest received!
How does the requirement of the deposit guarantee scheme that only money directly held by the institution you are banking with is covered come into play if Trade Republic is passing it on to other banks with the customers agreement.
Not sure I follow the question but your interpretation of how the DGS works seems to be incorrect. Trade Republic would not be able to advertise a €100k DGS protection for each customer cash account if that wasn’t the case. TR isn’t a bank, it’s a broker and therefore they have to partner with banks to store customer deposits. Those customer deposits are eligible for DGS protection
Absolutely, provided it’s less than €50,000. As I said, 4% interest up to €50,000 with instant access and full protection under the Deposit Guarantee Scheme. What’s not to like!
From what I can see online, Revolut offer 2.12% on EUR cash balances. Unsure if this is available to Irish customers, but even if it is, totally sub par comparatively
They are offering 4.75 at the moment but only if you save in GBP. 2.12 for saving in euro. But then you have to take into account the drift of the exchange rate when you need to access the money
@@malone_financial I already use trade Republic a long time. If you need instant access to your cash traditional banks don't offer this, you have to lock it away for 12 months or more and they have other limitations. So it's not the same
Actually you’re incorrect! AIB and Bank of Ireland have instant access accounts that offer better rates than 1.56%. Albeit with caveats and limitations on deposits. Regardless, I don’t recommend traditional banks or Bunq so both are a moot point. If you’ve fully utilised Trade Republic perhaps consider Lightyear
Welcome to the real world where people have genuine reasons to save money and thus savings options must be considered. Investing is always better for generating returns long-term, but it’s not always suitable for short term needs. For example, where someone needs to store savings somewhere for a short period of time i.e. when saving for a deposit on a home
Another reality check…people need emergency funds to ride out the ups and downs life throws at them. This should be in easily accessible savings. That guy champions borrowing as much as possible to buy assets. Ask anyone in Ireland stung by investment properties (particularly those on interest only terms) in the early 2000’s how such an extreme approach can turn out 🤔
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