Saving money in times of crisis: what’s the best option for Irish savers?
The coronavirus pandemic has turned global markets upside down. At least 88 central banks around the world have cut interest rates since the outbreak of COVID-19 in an attempt to contain the economic damage. The European Central Bank meanwhile has defended a negative deposit rate on EU banks since 2014. Given the troubling economic forecasts for this year, this position is unlikely to change any time soon.
For Irish savers that already suffer some of the lowest rates on savings in the Eurozone, the current market uncertainty makes saving money particularly challenging.
Deposit Guarantee protected fixed-term savings accounts are one of the most secure ways to save money in uncertain times. Savers know how much they’ll earn and how long it will take them to earn that interest, meaning that they don’t have to worry about fluctuating stock prices or pandemics.
With the average rate in Ireland for term deposits up to 1-year currently at a paltry 0.02% (as indicated in the latest available ECB data) Irish savers have historically been at a disadvantage when it comes to selecting a savings account with a decent rate of return. This is not necessarily the case in other European countries, however. Average rates in the rest of Europe are many times higher than the Irish equivalents.
Raisin Bank enables customers to open savings accounts in countries across Europe where rates are higher- such as France, Austria and Italy. On Raisin Bank’s deposits marketplace, savers can compare over 45 savings accounts from 8 European banks. By offering rates up to 1.36% p.a., with Raisin Bank you can multiply your current interest and avoid your savings losing value over time.
While fixed-term deposits are undoubtedly one of the best options for savers in times of uncertainty, it is important to put some thought into selecting the correct savings product.
Banks generally offer higher interest rates for . The key here is . They know they will have the deposit for the agreed duration, which can be anywhere . Likewise, the saver knows exactly how much they will receive at the end of the term. With Raisin Bank, the top interest rate is currently 1.36% p.a. - a great deal higher than the 0.02% Irish average.
This is where customers save a , and are guaranteed a for a (term). They are sometimes also referred to as fixed-rate , deposit accounts, or simply bonds. Savers don’t have access to their money during the agreed period.
To find the account that suits them, savers should weigh up the and . Some accounts also have a or . With Raisin Bank, savers can open as many fixed-term accounts with different banks as they like, and can check them all in one place in their account overview.
Saving abroad can sometimes generate a degree of nervousness, especially for first-timers. But there’s good news – saving in Europe has never been easier or safer thanks to the European deposit insurance scheme (EDIS). It covers up to €100,000 per person, per bank, anywhere in Europe. This is thanks to EU Directive 1994/19/EC and 2009/14/EC. And the best part? This amount includes any interest earned on the deposit. As a European savings marketplace, Raisin Bank enables Irish savers access to higher rates across Europe, with everything online and in English.
Visit Raisin Bank for more.
