For a term deposit, both the repayment of the investment as well as interest payments are contractually guaranteed because neither the investment nor the interest payment are subject to price risk or interest rate risk.
As long as the term deposit is made in EUR, there will be no exchange rate risk if your savings are made in EUR. An exchange rate risk might only occur if a term deposit is made in a different currency to Euros.
An insolvency risk of the bank remains, but this risk will be protected by the respective national deposit guarantee scheme.
Normally, you cannot access funds invested in your term deposit prior to maturity. However, Raisin.ie also has products available that allow for early termination without any penalty fee – please note that in the case of an early termination, the interest rate might be reduced or could be excluded altogether (made void or cancelled).
Another advantage is the guaranteed interest you will receive on the term deposit, especially when comparing it to an overnight account. For an overnight account, a variable interest rate applies. For a term deposit, the pre-agreed interest rate remains unchanged for the entire term.
In addition, you benefit from the fact that all services provided by Raisin.ie are free of charge. There are no fees for opening an account nor for maintaining the account. Furthermore, we bear all the costs incurred for international EUR transfers from your Raisin Account to the term deposit account as well as the charges for transferring funds from the term deposit account to the Raisin Account upon maturity. Only in exceptional cases, such as currency exchanges, may additional costs be incurred. Details can be found in the terms & conditions.