€146bn in savings currently sitting in low-yield accounts
Four in 10 people (41%) have less than €1,000 in savings, and the 58% who hold more than €2,000 in savings earn very little interest, research commissioner by Bankinter has shown.
The retail bank, which is launching Deposit Plus, a new range of fixed-term deposit products, found that 30% of Irish adults have less than €1,000 in savings and one in 10 (11%) have no savings at all.
Among people with over €2,000 in savings, there is a combined €146bn currently in low yielding accounts offering average interest rates below 0.2%, and many offering no return at all.
When asked what prevents them from switching to higher-yield accounts, 26% said rates are too low to bother, 14% cited that it’s too much hassle, and 27% were nervous about not being able to access their funds in an emergency.
In terms of emergencies that might require them to access their savings, 32% named household repairs or medical needs, and 15% job loss.
“With so many people keeping money where it feels ‘safe’, they’re missing out on what that money could be doing for them,” said Ciarán Byrne, head of everyday banking at Bankinter.
“The key insight from this research is that Irish savers don’t need to take risks; they just need more flexible, transparent options.”
The Deposit Plus range offers a rate of 2.62% AER for six-month fixed rate accounts and 2.3% for the 12-month option.
Customers also have the ability to access up to 25% of their funds after eight weeks.
Customers can deposit any amount from €2,000 to €200,000, with interest paid upon maturity of the term to their nominated bank account.
The survey of 1,000 adults nationwide also found that a third of Irish adults (36%) feel confident about their savings.
Men are more likely to feel in control (41%) compared to women (31%), with 39% of men claiming they know the interest rate on their main savings or deposit account compared to 26% of women.
One in five respondents (20%) feel anxious about their savings, and over a third (36%) admit they know they should be doing more.
There is €146bn in savings earning little interest at present.
“What this research shows is that Irish people are careful with their money, but caution can come at a cost,” said Byrne.
“Most savers want the reassurance of accessibility and the confidence of a fair return. Deposit Plus was designed with that in mind. It gives people the flexibility they value while rewarding them for the money they’ve worked hard to save.”
Photo: Ciarán Byrne. (Pic: Supplied)
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