79% of adults interested in new savings scheme - research

New Irish government savings scheme garners strong public interest according to research from the Banking & Payments Federation Ireland (BPFI). Of the 1,000 adults surveyed, 79% expressed interest in the planned Savings and Investment Account (SIA), with Tánaiste and Finance Minister Simon Harris expected to outline the scheme in October's Budget.

The scheme is anticipated to launch the following year and likely feature a single flat tax rate on savings investments to attract the €170 billion in existing deposits currently held by Irish savers.

Awareness of the scheme stands at 48%, with awareness dropping to 25% among 18-34 year olds. Those interested in the SIA plan to fund their accounts primarily from existing savings (30%) or planned future savings (30%). Key features most important to respondents were ease of opening (83%), tax incentives (78%), and flexible withdrawals (77%).

Irish investors are motivated by long-term goals like retirement (42%) and short-term objectives like rainy-day funds (34%). However, barriers to participation include a lack of funds (61%), fear of losing money (49%), and insufficient knowledge (48).

BPFI CEO Brian Hayes emphasized strong interest in the proposed SIA, with 41% expressing very or extremely interest and 38% expressing some level of interest. For the SIA to succeed, Hayes stated it must be simple to open, easy to understand, and flexible to meet individual needs. Tax incentives, particularly tax-free options, are seen as crucial. The BPFI estimates that between €2 billion and €7 billion could be invested in the SIA during its first year.