Bank of Ireland research proves solid success of Government's SSIA scheme

76% of participants are first-time savers

Figures released today (date) by Bank of Ireland Savings & Investments reveal that 76% of SSIA savers did not contribute to any other savings scheme (excluding pensions) before opening their SSIA between May 2001 and April 2002. With only 24% of SSI scheme savers previously saving on a regular basis, the Bank of Ireland survey indicates solid evidence of the success of the scheme in attracting first-time or 'novice' savers, and potentially changing the saving habits of Irish consumers.

The research also revealed that 'novice' savers - those who didn't previously contribute regularly to a savings scheme - were far more likely to own a deposit-based SSIA product, and less likely to be saving the maximum monthly contribution of €254. On the other hand 'experienced' savers, who had previously contributed regularly to a savings scheme, were more likely to be equity account holders and tended to save more. The research reveals that there were more 'novice' savers in the 18 to 24 years of age group and in the group aged over 55 years of age. In contrast, a significant proportion of 'experienced' savers were between 25 and 34 years of age.

Bank of Ireland's research also indicated that 60% of SSIA savers strongly agreed that contributing to the scheme has made them more likely to continue saving money in the future.

Commenting on the findings Gareth McQuillan, Head of Marketing, Bank of Ireland Life, said: "Our research indicates that SSIA holders have an extremely favourable attitude to both the scheme and the product that they selected. The high proportion of novice savers who have been attracted to save regularly under the scheme, coupled with the positive indication of future saving habits which it has engendered, provides clear proof that the initiative has delivered on its objectives."

Unsurprisingly, taking advantage of the 25% government bonus was an important motivation for take-up of the scheme, with 46% of people admitting that this was the primary reason for opening an SSIA. With 86% of respondents stating that a new form of bonus or tax incentive would make them likely to continue saving, there is a clear message for the Government as to how best to encourage the savings habit.

Against this backdrop Bank of Ireland is encouraging the government to introduce an incentive for savers to maintain or increase their savings following the maturity of their SSIAs. On this topic Gareth McQuillan said "The first SSIAs will start maturing in May 2006 and between now and then, there is a real opportunity for the Government to build on the success of the scheme by encouraging long term savings habits. Bank of Ireland would add its voice to those calling for new forms of bonus or tax incentives for people who either use the proceeds of their SSIA or who continue their regular savings into pension plans or other long term savings vehicles."

McQuillan went on to summarise the research by saying "There's no doubt that the scheme offers clear benefits to individual savers, and for anyone not currently contributing the maximum monthly amount of €254, there is a further opportunity to maximise the benefits of this scheme through increasing your contribution. Bank of Ireland strongly advises anyone, if they have capacity to do so, to increase their contribution in order to fully realise the benefit of the government's 25% bonus".

Ends

For reference contact:
Catherine Moynihan
Manager,
Savings & Investments Marketing
Bank of Ireland Life
Tel: 6172878

Mary Brennan
Group Corporate Communications
Bank of Ireland
Tel: 01 604 3838

Research base - Bank of Ireland and Bank of Ireland Life SSIA customers, carried out by Lansdowne, October / November 2004