Raisin bank and large deposits

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pjuegos

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A friend recommended Raisin to me, but as I am unfamiliar with it, I feel a bit apprehensive. Would you consider placing a large sum of money in Raisin, provided it does not exceed the €100,000 deposit guarantee limit in each bank?

I have seen many posts mentioning Raisin Bank in AAM, including the 'savings best buys' post. I suppose that is somewhat reassuring.

Raisin is regulated by the German Federal Financial Supervisory Authority. If it was to go out of business, the deposits would still be safe in the partner banks I guess, so you'd just have to deal directly with the partner bank?

Cheers
 
Raisin isn't a bank, so it is the individual bank e.g. Younited that you need to be concerned about in terms of guarantees etc
 
messyleo said:
Raisin isn't a bank, so it is the individual bank e.g. Younited that you need to be concerned about in terms of guarantees etc
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Raisin is a bank and is licensed/regulated as such. And is protected under the DGS. The following is the regulatory streamline from its website.

Raisin Bank, trading as Raisin.ie, is authorised/licensed or registered by BaFin (Bundesanstalt für Finanzdienstleistungsaufsicht) in Germany and is regulated by the Central Bank of Ireland for conduct of business rules.
 
pjuegos said:
A friend recommended Raisin to me, but as I am unfamiliar with it, I feel a bit apprehensive. Would you consider placing a large sum of money in Raisin, provided it does not exceed the €100,000 deposit guarantee limit in each bank?
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I had similar concerns. My research led me to conclude that it was safe for a substantial deposit (€100k in my case) on the basis that both Raisin (where my money would rest while in transit to the destination bank) and the destination bank e.g. Younited who will hold the deposit on an ongoing basis are covered by their respective National Deposit Guarantee Schemes. If anything goes wrong my capital is secure. I also concluded however that given the possibility of something going wrong, and the time it might take for the issues to be resolved, I wouldn't use it for funds that might be needed at short notice (which isn't an issue in Raisin's case as they are predominantly medium term deposits anyway). I know that the cases where the DGS was called upon in Ireland were resolved and compensation was issued pretty quickly, but I'd always be wary of these things getting dragged to the High Court. So while your capital is safe, you might want to consider whether or not you could manage if there was a delay in withdrawing your funds. You will of course need to do your own research and satisfy yourself.
pjuegos said:
If it was to go out of business, the deposits would still be safe in the partner banks I guess, so you'd just have to deal directly with the partner bank?
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I am not familiar with the details of the process of all the various National Deposit Guarantee Schemes, but in Ireland, one of two things happened in the case of businesses that got themselves in to trouble (1) The Central Bank arranged for another institution to take over the covered business and so customers were not inconvenienced, they simply felt with a different institution (2) The Deposit Guarantee Scheme issued a cheque to all covered holders in respect of all covered deposits. For example, in the case of a number of Credit Unions the cheques were issued in a matter of days, see here: https://www.depositguarantee.ie/en/news
 
OK, so the German National Deposit Guarantee Scheme should cover the "deposit in transit" up to €100k.

In this case, you just need to ensure you don't deposit more than €100k in any bank and that you never have more than €100k in transit through Raisin.

Thanks!
 
Raisin now saying they didn't get a transfer if €20,000 eventhough it was detailed in raisins transaction history. They are now looking for proof of transfer. They also are asking to upload a form already uploaded.
 
Pmc365 said:
Raisin now saying they didn't get a transfer if €20,000 eventhough it was detailed in raisins transaction history. They are now looking for proof of transfer. They also are asking to upload a form already uploaded.
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What's that got to do with this thread?
 
Pmc365 said:
Raisin now saying they didn't get a transfer if €20,000 eventhough it was detailed in raisins transaction history. They are now looking for proof of transfer. They also are asking to upload a form already uploaded.
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@Pmc365 - do you mind me asking how you transferred the funds? I opened an account with Raisin and they supplied me with only a BIC code. To transfer funds from my bank, I need the IBAN also. Their website states it can be found in one's account but I can't see it. It's rather worrying that Raisin is denying your transfer of €20,000. I hope this is resolved for you soon.
 
Cooler_box, my experience with Raisin was that you can't see the IBAN until they have completed their ID checks. The emails received from them are very unclear, as they seem to be sent "out of sync" with the actual process
 
So is it clear that if you have have more than 100k deposited in various banks through Raisin you are covered by the dgs of those deposit banks and not Raisin? So the dgs is irrelevant to Raisin unless funds are in transfer?
 
Just to clarify Raisin eventually agreed they received my credit transfer. They initially queried its receipt and asked for proof of transfer which I forwarded them despite the fact the transfer was already detailed in Raisins transaction history.
I was supplied with a German IBAN to facilitate transfer. I recommend a test transfer of €1 before transferring substantial sums to make sure you inputed correct IBAN
 
gipimann said:
Cooler_box, my experience with Raisin was that you can't see the IBAN until they have completed their ID checks. The emails received from them are very unclear, as they seem to be sent "out of sync" with the actual process
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@gipimann. I agree. The process is, as you point out, "out of sync" with the registration and communication. It's all sorted now. Just trying to understand what the implied 'Issuer Risk' means and how it affects the Deposit Guarantee. Just when you think you have one problem sorted, another takes its place!
 
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