Saving in other EU countries
As a European Union (EU) resident, you can shop around for banks/financial providers in other EU countries. There are a number of different websites and platforms available that allow you to compare the interest rates and terms of savings accounts available.
However, as appealing as some interest rates may seem, it is important to find out some key information before you decide to save your money in another European country:
- Ensure that the bank or financial provider is regulated and supervised by a public body, similar to how Irish banks are supervised by the Central Bank of Ireland.
- Ensure that the bank or financial provider is covered by a national Deposit Guarantee Scheme (DGS). This means that the money you deposit will be guaranteed up to €100,000 per person, per bank or financial provider if they are unable to repay your deposit.
- Remember, if you run into problems with your financial provider you may need to use another EU country’s complaints process.
- Always watch out for scams. Do not give away any personal information or money until you are sure that a bank or financial provider is genuine.
Paying Interest on EU savings accounts
If you receive interest from a savings account in another EU Member State, you must declare this to Revenue in your annual tax return. You will need to declare how much interest you have received, and any tax that you have already paid on it. You then must pay the 33% Irish DIRT rate (Deposit Interest Retention Tax) on the interest you have earned on your savings.
The type of return you must complete will depend on how you are registered with Revenue.
PAYE workers
If you are a PAYE worker, you can declare this on your PAYE Income Tax Return (Form 12). To do this, log into myAccount, click on “Review your Tax” and select the relevant year. This applies to any PAYE Worker with non-PAYE income (including income subject to DIRT) of any amount less than €5,000.
A paper version of the Form 12 is available and can be completed and sent to Revenue if needed.
Self-assessed workers
If you are registered for self-assessment, you should include the information in your annual Income Tax Return (Form 11) which can be filed online using Revenue Online Services (ROS). A paper version of the Form 11 is available and can be completed and sent to Revenue if needed.
More information on DIRT can be found on the Revenue website.
How to complain when your saving account is in another EU country
If you have an issue with a savings account in another EU country, how you complain will depend on whether you signed up through a platform, or directly to the provider yourself.
If you signed up through a platform
Try to sort out the complaint directly with the platform
The first step is to contact the platform to see if they resolve your issue. For example, the platform Raisin has a dedicated customer service team for Irish customers. They can be contacted by email at service@raisin.ie or by telephone at +353 1 5461020. They will handle all complaints and act as the go-between you and the bank/financial provider.
Complain to the relevant Alternative Dispute Resolution body (ADR)
If the platform does not resolve your complaint or does not do so in a timely manner, they should tell you what the next steps are. This could involve:
- Providing you with the contact details for the bank/financial provider where you have your savings account and what you must do
or
- Giving you the contact details of the relevant financial ombudsperson responsible for handling cross-border disputes in the country of the bank/financial provider.
For point B, you can also find this information on the FIN-NET website. FIN-NET is the European network of financial ombudspersons and consumer-complaints organisations.
On the list of FIN-NET members, you can click the country names to see all members in that country, including information on the financial services they cover, the languages they work in and their contact details.
Complain to the Financial Services and Pensions Ombudsman (FSPO)
If your complaint is about the platform rather than the bank/financial provider in which you have an account, you may be able to complain to the FSPO. You will need to complete the FSPO complaint form and submit the Final Response Letter (FRL) you received from the platform following its investigation of your complaint, or where you haven’t got one, you will need to provide evidence of the complaint being made to the platform.
If you signed up directly with a provider
The first step is to contact the provider to ask them to resolve your issue. If the provider does not resolve your complaint or does not do so in a timely manner, you should escalate your complaint. FIN-NET is the European network of financial ombudspersons and consumer-complaints organisations.
On the list of FIN-NET members, you can click the country names to see all members in that country, including information on the financial services they cover, the languages they work in and their contact details.