New savings plan to bring windfall
Savers who put aside between £10 and £250 a month are in for a cash windfall under a new scheme being planned by the Minister for Finance Charlie McCreevy.
Under the plan people who put money into special accounts will receive a special interest rate, will be exempt from Dirt tax and will be in line for a special bonus.
Minister McCreevy is expected to launch the scheme next Thursday. He plans to offer savers a bonus of £1 for every £4 saved.
Savers will have a year during which to establish the new accounts and will then be allowed to lodge cash for five years. The move is being planned as an anti-inflationary measure.
Officials hope that the bonus scheme will encourage small savers to lodge their money and therefore lead to large amounts of cash being taken out of circulation.
This should in turn control consumer spending and help keep inflation low.
