herald

Monday 23 October 2017

Savers still stash away e5k a year

MONEY might be tight but regular savers manage to squirrel away more than €5,000 a year.

The quarterly Consumer Savings Sentiment Research shows that, while most struggle for cash, 31pc of adults save regularly, averaging €5,104 per year.

Periodical savers, a further 52pc of adults, save €2,318 per year on average.

The research, undertaken by EBS, showed fewer people are now dipping into their savings.

Some 29pc of adults accessed their savings last month, compared with 37pc in March.

These figures are down from a high in January 2010 when 45pc of people had to dip in.

The research also found that a third of people are using their savings to compensate for lost income, but this number too is on the decline.

While most will use their savings to pay for holidays, 18pc of people will borrow to pay for that trip away this year.

The research showed that that just one in six are saving their money in lump sum accounts, and EBS encourages more people to do so during National Savings Week, from September 9 to 13.

SACRIFICE

Richard Kissane, head of savings with EBS, said: "National Savings Week is an annual EBS initiative to promote the importance of savings to the public.

"This year our primary goal is to broaden awareness of the variety of savings options available to them, encouraging them to tailor an option that best suits both their current and future needs.

"The research highlights the continued commitment to savings amongst the Irish public, yet with only one-in-six availing of the higher rates available for those who select a fixed term option.

"We believe that there continues to be a significant opportunity to highlight the value and potential returns that exist from fixed term deposit accounts."

Mr Kissane said that he is conscious that saving on a regular basis requires sacrifice but he knows that many people have a lump sum built up.

"The team at EBS are available to provide information to people over the course of the week and will develop personalised savings plans in our offices throughout the country," he added.

hnews@herald.ie

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