Saving in other EU countries

Can you save money in another EU country safely?

As a European Union (EU) resident, you can compare savings accounts across Europe to find the best rates and terms. There are a number of different websites and platforms available that allow you to compare the interest rates and terms of savings accounts available. 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.

What should you check before opening an account?

Before opening an account, check that the financial provider is regulated and supervised by a public body, similar to how Irish banks are supervised by the Central Bank of Ireland. Make sure your savings are covered by a national Deposit Guarantee Scheme – this protects deposits up to €100,000 per person, per institution if they are unable to repay your deposit. 

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 real. If you have a complaint, follow the relevant process for platforms or providers, and use resources like FIN-NET or the Financial Services and Pensions Ombudsman (FSPO).

Paying interest on EU savings accounts

If you earn interest from an EU savings account, you must declare it to Revenue in your annual tax return and pay Irish Deposit Interest Retention Tax (DIRT). 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 on the interest you have earned on your savings. 

Pay As You Earn (PAYE) workers

If you are a PAYE worker, you can declare this on your PAYE Income Tax Return (Form 12). You can also register for Revenue service online (ROS) and do it online.  

• Next, 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.

Should you go direct or use an online savings platform?

You may choose to open a savings account by dealing directly with a bank or financial provider in another EU country. However, you may also prefer to use an online platform to help you save money in EU banks. These platforms offer several benefits, but there are also some downsides to consider.

Benefits of using savings platforms:

• Act as a go-between for consumers and banks or financial providers across the EU.
• Allow you to compare savings accounts from multiple banks in different countries, often highlighting interest rates, terms and deposit protection schemes.
• Enable you to open and manage savings accounts through the platform, which deals with customer service and they can talk with the bank or provider for you.
• Assist with account setup, transfers and resolving issues, acting as a go-between if you have questions or complaints.
• If you have a complaint, you typically contact the platform first. If the issue isn’t resolved, the platform should guide you on how to escalate your complaint to the bank, financial provider or the relevant dispute resolution body in the country where your account is held.

Downsides of using savings platforms:

• Fees: Some platforms may charge account opening, maintenance or transaction fees. Always check the costs before signing up.
• Access to funds: Access rules may vary – which means that it may be harder to withdraw or you may have let them know in advance, or you may have to keep a minimum in the account.
• Customer service: You may need to deal with both the service and the bank if a problem arises and this may make it more difficult to fix. 
• Regulatory differences: Rules may be different in other countries or with other services on deposit protection, tax rules and complaints processes so check these details carefully.
  
• Limited choice: Not all banks or savings products are available through every platform, so you may not get the full range of options.

How to complain when your savings 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 savings platform, or directly to the provider yourself.

If you signed up through a platform

Try to sort out the complaint directly with the savings platform

The first step is to contact the platform to find out if they resolve your issue through its dedicated customer service team for Irish customers. They should handle 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:

A. Providing you with the contact details for the bank or financial provider where you have your savings account, along with instructions on what you must do next.

or

B. Giving you the contact details of the relevant financial ombudsperson responsible for handling cross-border disputes in the country where your bank or financial provider is based.

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 read about 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 deal with your issue and fails to deal with it quickly, you should raise it with FIN-NET. FIN-NET is the European network of financial ombudspersons and consumer-complaints organisations.