Savings with Raisin: opinions?

Hello everyone, does anyone use this service?

It seems it aggregates many deposit accounts over the EU, so that you can invest your money (€ only) and get quite interesting risk-free rates (over 2% for fixed term deposits, 1-2 years only)

https://www.raisin.com

It might be a nice improvement over current savings rates here in CH, but I’m worried about taxes (C permit here, how does that work?) and the actual risk (the rates are quite high, but the currency is the Euro, so I’d be exposed to the currency risk too)

Taxes aren ́t the issue as you will be taxed on your world wide income/wealth. EUR is and also check out what the deposit security is (remember the Iceland banks).

2% interest rate, the euro already lost more than 2% of its value versus the CHF this year.

If you are lucky you will not lose much in CHF value.

With additional return comes additional risk.... and if you don't understand that risk, then you should pass on it.

Raisin does not aggregate anything, it is basically a feeder for a number of European banks. From the documentation I have read it is unclear to me who receives the deposit guarantee and from whom.

You need to decide for yourself what risks you wish to assume.

For the taxes you will simply add the interests you received to your income in the tax assessment and pay your income marginal tax rate for those. You should check whether there will be any withholding taxes by raisin and how in case you’d get them back (I think depends on the legislation of where the money actually are).

You already mentioned the currency risk, and if you decide to accept that: the “over 2% for fixed term deposits” honestly does not sounds that appealing at all. To make few examples:

  • Interactive Brokers pays 3.2% just on cash (above 10k euro), not locked in any way. And it’s covered up to 250k by SIPC
  • You can get short term government bond ETFs or money market ETFs, e.g. https://www.justetf.com/en/etf-profi…10510800#chart earned 1.6% in the last 6 month, the money is also not locked here
  • If you look at fixed deposits, on https://festgeld.de you have options north of 4% for 1 year deposit. If you want to stay in Switzerland, Tessin bank pays 3.1% for 2 year deposits