Eoghan O’Hara
Country Head Ireland, Raisin
To make the most of your money, shop around for the best savings providers offering the best rates — and, while you’re doing so, be aware of online scams.
A Central Bank of Ireland report released late last year found that — within the EU — Ireland has among the lowest levels of direct retail participation in capital markets.
“As a result, €140 billion of Irish household deposits are sitting in savings accounts or current accounts earning next to nothing,” says Eoghan O’Hara, Country Head of savings platform, Raisin Ireland. “We need to encourage people to have the confidence to look around for better options for their hard earned savings.”
It shouldn’t be a surprise that people are so risk-averse with their money, particularly in today’s volatile and unpredictable world. Obstacles to investment identified in the report include psychological barriers — such as fear and a lack of trust — plus knowledge and understanding about investment, and a lack of support and advice.
O’Hara agrees these are real issues. “Maybe you are someone who is unsure about what to do or lacks the confidence to move money,” he says. “Or maybe it’s just not in your nature to invest. In Ireland, we can be conservative with our money.”
Steps to building financial literacy and confidence
Still, he points out that there are better options available that don’t require you to take on unwanted risk.
“For a start, I encourage people to move their money from a low — or no — interest savings account into a higher interest account,” says O’Hara. “It’s a really good first step in building your financial literacy and can be a great first step in building financial confidence”
Having choice is key. Whatever financial decision you make — from buying groceries to looking for a credit card or home insurance provider — you shop around and find the best value. It should be no different when choosing a savings provider.
“For example, we currently have 33 European banks on our platform,” Sponsored by Raisin says O’Hara. “Giving yourself choice and looking around for the most attractive rates is the right thing to do.”
Thanks to EU deposit guarantee schemes — which protect savings up to €100,000 per depositor, per banking group in all EU Member States, even if a bank fails — savers don’t have to stick with their own bank. They can look further afield. “If you’re not happy with the rate your bank is offering you, it’s possible to go elsewhere and — without taking on any extra risk — earn in some cases 2% or 3% more than you are earning at the moment,” says O’Hara. “That can have a real impact on your ability to keep up with inflation.”
the biggest, most sinister online scam is phishing
Cash deposits and staying secure online
Of course, having easy access to cash deposits is an important part of risk-appropriate financial planning. “It’s good to have funds available in an emergency,” says O’Hara. “If your money is to hand, it gives you psychological security so you can deal with whatever life throws at you. But, again, if you have cash sitting on deposit, make sure it’s in the place that’s giving you the highest possible return.”
Also, when banking online, be aware of scams. For O’Hara, the biggest, most sinister online scam is phishing, where cybercriminals impersonate established, reputable organisations and send out emails and texts to steal personal details, bank details and passwords.
“With the onset of AI, phishing is becoming more sophisticated,” he says. “These people are well able to make very convincing emails, phone calls and SMS messages. The ultimate rule of thumb is: ‘If it looks too good to be true, it normally is.’
‘Also, if you ever get any communication that you’re unsure of from a provider like us — or any other — pick up the phone and double-check with them. We will never call, text or email anyone to say: ‘This is the perfect account for you – please deposit your money!’ So, if you’re in doubt, just get in touch with us.”
