60% of savers paying SSIA maximum
Bank of Ireland has revealed that customers are squirrelling away more money in Special Saving Incentive Accounts (SSIA) as the deadline for the bonanza payouts loom.
The bank says customers has increased significantly their contributions to SSIAs over the past six months with almost 60% of savers now paying the maximum permitted monthly contribution of 254.
Research carried out by the bank shows that 85% of its SSIA holders stated that putting spare cash into their SSIA each month presents no financial difficulty.
The recent rise in monthly payment levels indicates that many of these savers are now taking the opportunity to save the maximum amount, thus benefiting from the full Government contribution.
When former Finance Minister Charlie McCreevy introduced the five-year scheme to get people to save more, he decided to give £1 (€1.27) for every £4 (€5.08) put away in an SSIA.
At the end of November 2004, 51% of account holders were paying the €254 maximum each month. By the end of May, this figure had risen to 59%.
The average monthly contribution of SSIA customers currently stands at €190, up from €176 six months ago.
Both figures have risen substantially since May 2002, shortly after most savers entered the scheme.
With now less than a year for the first batch of SSIAs to mature, BoI is urging customers to top up accounts to the maximum of €254.
Gareth McQuillan, head of marketing bank of Ireland Life, said: “I would especially encourage younger savers, whose average contributions are €50-60 lower than older savers, to increase their monthly contributions now if they can afford to.”
Research shows that for a saver who contributed €100 to a SSIA for the first four years and then ups it to €254 for the final year, they will see the saving pot grow from €7,500 to €9,810 on maturity.
