Deposit security main concern for 43% of savers, survey finds

SECURITY RATHER than the interest rate on offer is the priority for Irish-based savers in deciding where to put their money, according to research commissioned by Postbank.

Deposit security is the primary concern for 43 per cent of all savers and it increases in importance for those over 55, the survey found. For 31 per cent of savers the interest rate on offer was the deciding factor. The figures emerged in a new quarterly survey of the Irish savings market.

Chief executive of Postbank, Margaret Sweeney, said it was not surprising security was the main issue given the introduction of the bank guarantee scheme last year and the level of uncertainty around the sector.

Postbank, a joint venture between An Post and French bank BNP Paribas, is included under the State bank guarantee scheme.

Ms Sweeney said Postbank joined the scheme not because it needed any support but because security was so important to its customers. While 80 per cent of savers questioned said they were confident about the security of their deposits, 20 per cent were not. The main reason given for saving was for a “rainy day fund” at 42 per cent, while 15 per cent were depositing money for a holiday.

Ms Sweeney said the savings habit engendered by the SSIA schemes had continued. “What comes out of the survey is very positive: 75 per cent of Irish people are saving and 50 per cent are saving regularly. Approximately one third of people are saving over €250 a month,” she said.

Asked how they planned to reduce spending, 41 per cent of respondents said they would cut back on lunches and 35 per cent plan to spend less on holidays.