Research by Bank of Ireland and REDC has revealed strong confidence among those who save, with over half (57%) stating that they are either very or fairly confident in saving the same amount every month for the next few years. This compares to just 13% of those who aren’t confident at all. The research comes as Bank of Ireland launches GoalSaver savings account, designed to support those saving towards specific goals.
Almost half of savers (48%) said they are saving for a rainy day, with holidays (38%), home improvements (22%) and cars (20%) also featuring prominently as saving goals. Interestingly consumers also demonstrated goals outside of the usual targets, with more than one in ten (11%) interested in self-development by saving for further education courses. Meanwhile only a small amount of respondents (4%) said they are saving for something for their partner or spouse.
GoalSaver facilitates monthly savings from €20 - €2,000 and customers can avail of a useful online calculator which appears within the online account opening journey and tells customers how much they need to save towards their target objective. Customers can set up an account online and pay their direct debit from any Republic of Ireland current account. Account holders will also be entered into a draw for a €25,000 prize.
One in four (28%) consumers surveyed said they save less than €100 every month, with one fifth (20%) saving between €100 and €200 on a monthly basis. Demonstrating a lack of consistency, one fifth of respondents admitted to varying the amount they save each month.
Brian Vaughan, Bank of Ireland Savings and Investments said: “The research highlights that the typical Irish saver requires encouragement and goals in order to save on a consistent basis, with nine in ten saying that it is easier to save when you have a goal in mind. The survey highlights that consumers are saving with multiple objectives, however a large proportion of savers are considering ‘rainy day’ eventualities.
“We designed GoalSaver to make it as easy as possible for new savers to kick-start a plan which they may have been putting off. The calculator function makes it very straightforward for customers to calculate how much they need to save each month to reach their savings goal. We are also providing practical online tips and advice for those who are saving for their goal, whether it be a dream wedding or their first set of wheels, furthering their education, improving their home, or saving for their family’s future.”
The survey also demonstrated evidence of increased spending on everyday items affecting the ability for consumers to save, with 67% saying that they spend more on the basic essentials. On a positive note, a considerable amount of seasoned savers (80%) admit that saving gets easier with practice. Meanwhile a significant proportion of consumers identified tax relief as the biggest incentive for saving more regularly.
For more information, see: www.bankofireland.com/goalsaver