A new generation of savers kept staff busy in financial institutions in Kilkenny yesterday as the Government savings schemes started.

But while some customers had their minds already made up and opened accounts on the first day, the majority went away armed with advice and literature to think about the scheme that best suits them.

Most of the banks had prominent signs advertising the scheme and the AIB on High Street had a special desk in the foyer for customers signing up or seeking advice.

At the First Active branch, there was a steady stream of phone calls and customers dropping in for details, said the branch development manager, Mr Declan McCann.

Many customers had made up their minds they were going into the scheme and were signing up immediately. "People realise that 25 per cent before you get out of bed is terrific, on top of the rates paid by the financial institutions. I think people are very happy with the scheme and we're certainly pleased with the reaction."

While some of the questions being asked concerned the conditions attached to the scheme, such as what happens if a customer wants to reduce the amount being paid in, the most common questions, said Mr McCann, were: "Is the Government really going to give me an extra £1 for every £4 I put in? Am I guaranteed to get it?" There was a certain amount of incredulity about its benefits.

The scheme was attracting young people who had never saved in the past, he added, and the deposit accounts appeared to be the more popular option. At Bank of Ireland in Parliament Street the equity-based option was getting most attention. Overall, interest in the savings scheme appeared to be similar to that of the Eircom share flotation two years ago, he said.

The experience was similar at the TSB Bank, where a spokesman said there had been a lot of enquiries over the past fortnight. Many customers of other banks had come in, which showed that people were shopping around, but they were taking their time before making a decision.