Bank of Ireland SmartSavers now eligible for even bigger rewards

Figures revealed today Thursday 3rd June, by Bank of Ireland Savings and Investments show that more than 25,000 customers have opened a SmartSave account and are saving an average of €292 per month. In response to the growing popularity of its incentivised 'Save to Borrow' proposition, Bank of Ireland Savings and Investments also announced details of its new 2004 short-term savings account - SmartSave, which now offers enhanced rewards to customers who save regularly.

Since the product was first launched in 2000, 31% of SmartSave customers have taken out a SmartSave loan, the average amount being €7,802. Reflecting the popularity of the 'save to borrow' element of the product, one of the highlights of the 2004 SmartSave Savings package is that customers who make regular payments into their account for six months should be eligible to borrow up to 5 times their savings, to a maximum of €25,000.

Commenting on the factors contributing to the popularity of SmartSave, Gareth McQuillan, Head of Marketing, Bank of Ireland Savings and Investments said:"Our experience with SmartSave proves that people are taking a very considered approach when it comes to saving and borrowing. As well as an attractive regular savings option they are also seeking encouragement to maintain this momentum and build on it. With 66% of SmartSave customers aged under 30, it is clear that the unique product proposition which offers rewards for saving is appealing particularly to our younger customer base".

"We find that a lot of people who open SmartSave accounts have a particular savings need in mind - such as saving for a deposit for a house or treating themselves to a holiday", he concluded.

As well as being younger, information from Bank of Ireland's database shows that SmartSave borrowers are more likely to be female (57%) and urban (36% from Dublin). The data reveals that the main 'Save to Borrow' drivers were a deposit for a home, holidays, travelling, new car/motorbike and car insurance. The average loan term is 48 months.

In addition to the 'save to borrow' option afforded to SmartSavers, Bank of Ireland has introduced a range of banking incentives and rewards to encourage customers to develop a savings habit. Following 9 months of saving, SmartSave customers will be entitled to a special discounted mortgage variable rate (currently 3.25% over 5 years - subject to ECB rate), discounted single or multi trip travel insurance and will qualify for free transfer into the equity based SmartChoice plan.

With the new 2004 package, all customers that open a SmartSave Savings Account will also be rewarded with:

Contributions to a SmartSave account can start from as little as €40 and up to a maximum of €5,000 per month. A competitive interest rate of 1.5% is paid into the customer's account on an annual basis and funds can be withdrawn on demand.

For reference contact:
Gareth McQuillan
Head of Savings & Investments Marketing
Bank of Ireland Life
Tel: 01 6172360
Mobile: 086 8188413

Mary Brennan
Group Corporate Communications
Bank of Ireland
Tel: 01 6043838