Bunq enters ireland

byrnefm

I opened a Bunq account tjis week when I saw their new savings % rate.

Question - are they considered to be an Irish bank since they give Irish IBANs or do I need to tell Revenue that I've opened a foreign savings account?

Hibernicis

This doesn't relate to the IBAN. BUNQ do not deduct DIRT, therefore you need to declare the deposit income to Revenue. You do this with your annual income tax return

byrnefm

I think you still have to let them know if it's a foreign account, so was just checking:

https://www.revenue.ie/en/property/foreign-property/opening-a-foreign-bank-account.aspx#:~:text=Use%20Revenue%20Online%20Service%20(ROS,your%20account%20is%20located%20in

Opening a foreign bank account

Use Revenue Online Service (ROS) to file a Form 11 tax return for any year that you open a foreign bank account. Your return must give details of:

• the name and address of the financial institution that your account is located in
• the date you opened the account
• the amount of money you lodged to open the account
• any person or company in Ireland that helped you in opening the account.

Hibernicis

There is no requirement to advise the opening of a foreign bank account per se. You include it in your annual tax return. Form 11 is one of the forms used for annual income tax return. The other is a Form 12. By default the majority of people are required to complete Form12 which is much shorter. And for most tax payers this is done at the end of the year, and this is the point at which you include details of foreign deposit income. Form 11 is only required if you fall under self assessment rules.

If your total gross deposit interest (Irish and Foreign) is greater than €5,000, or if you are otherwise required to do so then you should register as self assessed and complete form11. Otherwise complete form 12 after the year end and include your overseas deposit income there.

morgana

https://www.boards.ie/discussion/comment/121474888#Comment_121474888

I just opened a savings account and got it set up and verified within minutes. Scan in ID doc, do the video live recording and uploaded the clip. Got the verification completed message a few minutes later.

Yggr of Asgard

For those who remember the “travel card” from bunq, it’s back

https://www.bunq.com/features/free-credit-card

no fee for the virtual card but 9.99 € for the plastic.

works like in the past, takes money from a specific account but is coded as credit card.

Jamie2k9

Opened a savings account with Bunq since they increased the rates.

Is there no code/faceID available?

Also is the interest paid net of DIRT or do you have to declare this?

Mimikyu

https://www.boards.ie/discussion/comment/121552181#Comment_121552181

There is PIN/FaceID, go to profile on the bottom bar then settings in the top right and into security. You can turn on FaceID there and change auto logout to 0 seconds to require FaceID or PIN immediately.

Interest paid does not have DIRT deducted and you’re meant to declare this yourself to Revenue.

TinCanMan

How long does it normally take for your information to be verified? I submitted all the details on December 28th and it's still pending verification as of January 10th. Obviously the Christmas period leads to some delays but there has been no feedback since.

Jim2007

https://www.boards.ie/discussion/comment/121595739#Comment_121595739

That is like asking how long is a piece of string. It really depends on your personal circumstances and the quality of the documentation you submitted. It could even depend on something as simple as your name! A common name and surname like say "Michael Murphy" is going to throw up more false positive MLA issues than say "Johannes Schmidt" with an Irish address.

podgeandrodge

https://www.boards.ie/discussion/comment/121492488#Comment_121492488

With notification to Revenue, let's say you got €1,000 interest without deduction of DIRT. When you do the tax return Form 12, you then have a liability of €333. Does this mean you have to pay them €333 or does that get taken off your current years Tax Certificate to slowly pay it back?

@Hibernicis

awec

https://www.boards.ie/discussion/comment/121515848#Comment_121515848

Bit confused. How does this differ from the other cards?

Yggr of Asgard

https://www.boards.ie/discussion/comment/121638183#Comment_121638183

The card is only really new for those customer with a "Easy Savings" account which previously did not get a card.

If you have a paid plan, than you always got card(s), but with this you now can get a card on the free "Easy Savings" plan.

Hibernicis

https://www.boards.ie/discussion/comment/121597828#Comment_121597828

Hey, apologies I didn’t see your question before now. You have a few options, provided the amount is less than €6,000, including pay in full or partially immediately or have the amount or remaining balance collected over four years (interest free) by a reduction in your Tax Credits. Revenue detail your options in Section 7 of their “How to submit a PAYE Income Tax Return” web document, link as follows:

https://www.revenue.ie/en/jobs-and-pensions/end-of-year-process/underpayment-position.aspx#:~:text=For%20underpayments%20in%20excess%20of,can%20contact%20us%20through%20MyEnquiries.

awec

https://www.boards.ie/discussion/comment/121638650#Comment_121638650

The whole card system seems to have changed since I last looked at it. The maestro is gone.

I have the credit cards, but they now seem to offer a debit. Is there any reason to actually use this instead of the credit (which doesn't really operate like a true credit card)?

Jim2007

https://www.boards.ie/discussion/comment/121638991#Comment_121638991

There are people who for various reasons don't want to have a credit card or indeed some who will not qualify for a credit card and debit cards are really targeted at them. And some people find it a better way to control their finances as they can't go a spending spree on a whim.

And just as you can't buy a generic car, you can't get a generic debit card or credit card, you get a specific financial product with a certain set of features and obligations, so it is very advisable to read and understand the product before you sigh up to it. I use the debit card offered by my bank here in Switzerland as a fraud preventative measure. My debit card is not directly linked to my bank account, instead I have to load money on to it, which I do every Monday morning and that way I know the max I can loose if something goes wrong is just whatever remains on the card at the point and unauthorised charge occurs. Even if your bank does not offer that feature you can replicate it by keeping a very limited amount on the account linked to the debit card.

I favour debit cards over credit cards because they give people better control of the behavioural aspect of their finances and reduce the risks of certain types of fraud.

awec

https://www.boards.ie/discussion/comment/121639146#Comment_121639146

No I know the difference between credit and debit in general.

But the Bunq credit is not really a credit card. You cannot spend any money you don't have, i.e. there's no credit. It basically operates the exact same way as a debit card except it's coded as credit. You didn't have to apply for it, there was no credit checks or anything like that.

In the past, Bunq didn't really offer debit cards, they had the Maestro card but that has issues with not being accepted everywhere. But now that they offer both Mastercard Debit and Credit (but as above, the Credit isn't really a credit) I am curious what the actual difference is.

Yggr of Asgard

https://www.boards.ie/discussion/comment/121639178#Comment_121639178

Maestro got phased out by Mastercard around July 2023. Bunq issued them as in their home market (Netherlands) most shops did not accept anything else than Maestro/VPay due to cost concerns by the merchants.

Mastercard Debit replaced the Maestro card (also in the Netherlands) and it became the standard card for Bunq, it works similar, as in that any charges are directly taken from the linked account balance but sometimes debit cards create issue in hotels, car rental agencies etc. where the merchant wants to block a certain amount.

There are still shops which only take debit card (as it's cheaper).

The Bunq credit card is not linked to a credit account (it's not extending you a credit line), it's coded as one with the credit limit being the current available balance (minus any authorisations) on the linked account at bunq.

As to why some people like a card that behaves like a credit card but is not one (i.e. not go into debt) is because some hotels etc. prefer credit cards.

The difference is for example when it comes to hotels which on a credit card reserve 125% of the room charges and when you check out, they take the real balance due against the authorization they did at check-in. With a credit card that usual works fine and the 125% is released the moment the final bill is paid. With debit cards sometimes the 125% still remains blocked for up to 14 days because the final bill is asked for as a new charge rather than linking it to the original 125% authorization. That is not always the case, but happens quite often. Most hotel systems don't have that issue with credit cards as they automatically link it to the credit card authorization done originally.

It's also sort of a hangover from the previous Netherland market behaviour in which debit cards are preferred (next to ideal payments) and credit cards are really only used when customers travel outside the Netherlands.

Credit cards (as in a line of credit) are not as widely offered/used in several european countries for domestic payments. Credit Card in several european countries for example just refers to the way the card is processed by the merchant (and what they pay) rather than being linked to an actual line of credit.

For example I have a german credit card but it's more like a charge card (as I have to pay it back at the end of the month) but it's behaving like a credit card at merchants (i.e. the merchant pays fees for it like it's a credit card). It's all about the money. Credit cards/debit cards earn different interchange rates for the banks issuing them and merchants pay different rates for accepting them.

So in this case, the card takes aim at customer who want a card that behaved to the merchant like a credit card (hotels/cars etc.) but don't want to apply for credit (for what ever reason).

awec

https://www.boards.ie/discussion/comment/121639353#Comment_121639353

So basically, for most people there's no difference whatsoever?

Yggr of Asgard

https://www.boards.ie/discussion/comment/121639503#Comment_121639503

If you are a paid user, than no.

If you are only having the savings account it's a free way (well some charge apply) to get a card you can use worldwide to use a balance on a ring fenced account instead of paying 30€ of stamp duty.

Jim2007

https://www.boards.ie/discussion/comment/121639178#Comment_121639178

That sounds a bit strange, because if it was truly masquerading as a credit card it would mean you could use it in situations were a debit card does not work, like car rentals for instance without requiring and blocking funds...

Citygirl1

Hi all. Looking at the Bunq website, the interest rate for savings accounts is a bit unclear. At this point, it says 2.46%. Easy Savings | bunq

But, when I click on the "Discover savings accounts" link, it says 1.56%. Savings Account | bunq

Am I missing something?

My impression is that it may be one rate, up to €100,000 and separate rate above.

Hibernicis

https://www.boards.ie/discussion/comment/121649135#Comment_121649135

The first link is on ie.bunq.com and is the rate you receive if you open your savings account through this part of the website. You'll see something similar (in Dutch obviously) if you look at nl.bunq.com. The 2.46% rate is on offer in IE and NL only. And if you go to de.bunq.com you will see the 3.85% rate that is on offer in the German market.

The second link is on the main bunq.com website and is the default that applies to "other counties", e.g. France etc. The 1.56% is the rate on offer in these markets.

In all cases the advertised rate is paid on balances up to €100,000. There is no interest paid on the amount of the balance over €100,000.

Citygirl1

Thanks for the quick response @Hibernicis

Citygirl1

I just signed up. It seems very efficient so far. I used my passport as ID, and it was verified in a few minutes.

Savings account is pending. I think, when that's available, I'll transfer a small amount initially, to see what I think of it.

Jamie2k9

Not sure what area to select on Revnue to declare interst. Is it EU Deposit Interest (excluding UK interest)?

I am PAYE.

retalivity

https://www.boards.ie/discussion/comment/121672438#Comment_121672438

Pretty sure that its that.

Jamie2k9

https://www.boards.ie/discussion/comment/121672465#Comment_121672465

It's 14 euro (I only stated in Dec 23) and while tempted not to submit I think should probably keep on the right side of Revenue!

jrmb

I've been waiting 3 weeks for my statement of liability from Revenue. I have a feeling it's been held up because I declared my interest from Bunq.

Jamie2k9

https://www.boards.ie/discussion/comment/121677486#Comment_121677486

Revenue are not quiet as quick as they have been even though its busy period. Know people who are waiting weeks like you but others with no issues.