Abstract: A permanent magnet has a base composition of SE—Fe—B, wherein SE is at least one rare earth element, including Y, and having the tetragonal phase SE2Fe14B as the principal phase, and additionally having an iron-free and boron-free phase of the general formula SE5(Co, Ga), as a binder alloy. In a method for making such a permanent magnet, a powder of a base ally having the tetragonal phase composition, and a binder alloy having the aforementioned general formula composition, are mixed in a weight ration between 99:1 and 90:10.