Where is a safe place to keep money?

Home › Banking > Is my money safe in banks?

With the rise of digital banks, contactless payments, and a wave of increasingly sophisticated scams, it’s no wonder many people are left asking, “Is my money safe in a bank?” On this page, we’ll discuss whether there’s such a thing as a safe place to keep money, how banks in Ireland are working to prevent scams, and how you can keep your money safe while banking online.

As with traditional high-street banks, online banks offer high levels of security and fraud detection to keep your money safe.

So how safe are online banks, and what protection measures do they take? The exact security features vary depending on the particular bank. Most online banks protect your money in the following ways:

• Your card number and other personal details are protected with strong data encryption, making it unreadable to anyone but your bank.

• Multi-factor authentication adds extra layers of security when logging in, like answering a security question, entering a PIN sent to your phone, or using biometrics.

• If you forget to log out, banks will automatically sign you out after a period of inactivity to protect your account from unauthorised access.

• Banks monitor for unusual activity, flagging potential fraud quickly. They’ll contact you about anything suspicious, and you won’t be responsible for anything you didn’t authorise.

The information provided here is for informational and educational purposes only and does not constitute financial advice. Please consult with a licensed financial adviser or professional before making any financial decisions. Your financial situation is unique, and the information provided may not be suitable for your specific circumstances. We are not liable for any financial decisions or actions you take based on this information.

Yes, Irish banks are safe, thanks to the Deposit Guarantee Scheme (DGS). This means that if a bank in Ireland fails, your deposits are protected up to €100,000 per person, per institution.

This protection applies to savings accounts, current accounts, and fixed term deposits. It also covers online banks authorised by the Central Bank of Ireland. If a bank becomes insolvent and can’t return your deposits, the DGS will reimburse you in full up to the €100,000 limit. So for many people, this limit is enough to consider Irish banks as a safe place to keep money.

Similar protections exist across the EU. For example, in non-euro countries (e.g. Norway or Sweden), this protection limit is the equivalent amount to €100,000 (or higher) in the local currency of that country. This effectively means that you can take advantage of potentially more competitive interest rates on savings accounts beyond Ireland while still benefiting from deposit protection. At Raisin Bank, all savings accounts on our marketplace come with €100,000 protection per person, per financial institution. Register now for free to get started.

The Deposit Guarantee Scheme is designed to protect deposits held by individuals, small businesses, companies, partnerships, clubs, and associations. 

The scheme does not cover deposits held by public authorities, insurers, pension funds, or financial institutions like investment firms. It also doesn’t cover accounts with An Post, but your funds are kept in separate accounts with approved financial institutions, so that they remain separate from An Post’s assets and can be repaid even in the unlikely event of insolvency. Deposits in the Post Office Savings Bank (POSB) are considered State Savings, which are fully backed by the Irish government.

Yes, current accounts are generally a safe place to keep money. Many people use current accounts for everything, from receiving income and saving to managing everyday spending. There’s nothing wrong with this, because, as long as you’re using an authorised bank, your money is protected by the Deposit Guarantee Scheme in the unlikely event that your bank collapses.

The only issue is if you have built up a large amount of money that exceeds the €100,000 limit for deposit protection. In that case, you might want to consider taking out multiple current or savings accounts with different banks as a way of extending your coverage.

Traditional savings accounts with easy access are a popular choice for saving money safely, as you benefit from earning interest on your money while also being able to withdraw or top it up whenever you need to. At Raisin Bank, demand deposit accounts offer DGS protection and are free to open, making them a flexible yet secure option.

For a slightly more competitive interest rate, you might also explore fixed term deposits. You get a fixed interest rate for putting your money away for a set term that you can choose from, which is usually between six months and five years. The longer you can go without access, the better your interest rate will typically be. So, not only do you benefit from the usual deposit protection (where applicable), you also have the certainty of knowing exactly how much you’ll earn by the end of the term.

If you’re after another safe place to keep money, State Savings products are considered a low-risk option, since they are backed by the Irish government. A popular example that comes under the umbrella of State Savings are savings bonds, which are three-year fixed-rate savings accounts issued by the Minister for Finance. The government is obliged to repay all State Savings money, thereby guaranteeing savers complete protection by the state.

While online banks are considered a safe place to keep money, and certainly more secure than having cash savings stashed away at home, using their services to shop online is not without risk. There are fortunately some steps you can take to prevent your money falling into the wrong hands.

The FraudSMART website was created in collaboration with Irish banks, and it provides alerts about the latest scams in Ireland, as well as offering practical tips to protect yourself. You can sign up for real-time alerts as new financial scams emerge and watch videos on topics like online shopping fraud, phone scams, or fraud targeting older people.

Before buying something online, you can use CheckMyLink, which helps you easily verify if websites (including online stores) are safe and legitimate. A secure site typically has a locked padlock icon next to the URL in the web address, so it is worth checking this before proceeding. Read our complete guide to checking if a website is legit.

In addition to educating yourself on the latest scams and behaving fraud-aware, the following steps can help you stay safe when banking online:

• Use strong passwords, for example, by combining three or four random words and a mix of numbers and symbols. Try to make it memorable, but not too obvious.

• Keep your mobile banking app or computer software updated to protect against cyber threats. Regular updates ensure you have the latest security protections, so your sensitive banking information is secure.

• Never click on a link provided in an email you believe is fraudulent, as it may be a phishing attempt, which is where you are tricked into sharing your personal or login information. If you’re ever unsure whether an email is genuine, try getting in touch with your bank directly, and they can help you.

• Reviewing your online banking statements regularly (ideally once a month) can help you spot any unfamiliar transactions early. If you notice anything suspicious, you can contact your bank right away to address the issue.

At Raisin Bank, the safety of your money is our top priority. While there are some actions you can take yourself for ultimate security, we do everything we can to ensure that you can use our services as securely as possible.

• To protect your account, you’ll be automatically logged out after 15 minutes of inactivity. A countdown timer is shown on each page so you can log back in if you need more time.

• Your password is your key to accessing your account. You are encouraged to create a strong password (between 8–64 characters) and use a password manager for added security. You can also reset your password anytime through your Raisin Account.

• For extra security, a Mobile TAN (mTAN) code is required to authorise any transactions. When you make a transaction, we’ll send an mTAN code to your phone via SMS. Just enter this code to confirm the transaction.

• We use the highest encryption standards to protect your data. When you enter your personal details online, SSL encryption ensures your information is secure. You’ll know it’s secure when you see “https” in the web address.

The registration process is very simple and can be completed online. Find out more about how it works, and start saving today.