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Independent

Savers losing out on €1.1bn interest

 

HOUSEHOLDERS that are in a position to save are missing out on €1.1bn in interest payments as they have their money in low-interest paying accounts, new research has found.

Most household savings are in accounts earning just 0.6pc, when they could be earning more than 3pc, according to financial products' comparison site Bonkers.ie.

Despite the availability of high interest rates, Irish households still keep €37.3bn in overnight accounts that earn a paltry 0.63pc.

Moving this money to a high interest demand account at 3.1pc could earn Irish savers an additional €922m in interest, David Kerr of Bonkers.ie said.

Savers with notice accounts were doing better, but were still leaving €168m on the table by failing to take advantage of notice and easy access rates of up to 3.3pc, Mr Kerr added.

"Interest rates this high are unlikely to last for much longer."

Advantage

"Consumers should take advantage of them while they have the opportunity," he said. "Banks have to meet strict new capital requirements by the end of this year so they are actively looking for our cash and are prepared to pay us well for it."

He added that once the banks had met the Financial Regulator's requirements on the amount of capital they needed to put aside, interest rates were likely to fall.

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