In their early 80s, a couple is contemplating the future of their substantial savings, weighing the options of transferring their six-figure sum from a local Irish bank to alternative institutions like Raisin or Bankinter. The concern arises from the potential complications of accessing the money by executors and the application of inheritance rules in the bank's home state versus Irish regulations. This query highlights a broader issue: the changing landscape of traditional Irish banks and the growing competition from fintechs offering online services and accounts to Irish residents abroad.
The traditional banks' dominance in the savings market, fueled by the margin between savings rates and lending profits, is under threat. The author argues that the banks' confidence in the conservatism of their customers is waning, especially with the emergence of fintechs and the increasing number of younger customers. The case of the couple in their 80s, considering alternative institutions, serves as a wake-up call for the traditional banks.
The author provides reassurance regarding the use of Raisin and Bankinter, emphasizing that the latter has established an Irish banking operation, ensuring that savings will be readily available to executors and subject to Irish inheritance tax rules. Eoghan O'Hara, the bank's country head in Ireland, confirms that saving through Raisin does not complicate estate administration and that Irish succession law governs the savings, eliminating the imposition of foreign inheritance laws or estate taxes.
The article concludes by suggesting that the couple consider drawing up an enduring power of attorney to ensure someone they trust can manage their affairs if they lose capacity. It also encourages readers to explore alternative savings options, keeping in mind the protection of funds by guarantees and the need to monitor fixed-term account rates to secure the best returns. The author's commentary underscores the importance of adapting to the evolving financial landscape and the need for traditional banks to address the challenges posed by fintechs and changing customer preferences.
