Equity SSIAs lead on deposit-based accounts grows

Equity-based Special Savings Incentive Accounts (SSIAs) have pulled further ahead of deposit-based SSIAs after a strong performance on the stock markets in recent months.

Bank of Ireland yesterday released figures showing that a customer who opened an equity SSIA in April 2002, the last month of the scheme, and saved the maximum €254 a month permitted under the scheme now has a balance of €18,965 - 15 per cent more than a customer who opted for a fixed-rate deposit SSIA and 20 per cent more than a deposit SSIA holder on a variable rate.

The returns on equity SSIAs opened at the beginning of the scheme in May 2001, when stock markets had not yet reached the end of their turbulent period, are now 13 per cent greater than fixed-rate deposit accounts and 18 per cent greater than variable-rate deposit accounts opened at the same time.

Dermot Murray, sales director at Bank of Ireland Life, said the figures showed that customers who took the risk of an equity-linked SSIA would be rewarded.

"This month's excellent figures support what we have been saying all along - namely that the value of equities can be expected to fluctuate from time to time, but over time they generally deliver better returns than deposits," Mr Murray said.

However, insurance and investment company Quinn Life also released figures showing that the value of its equity SSIAs is higher than the balances in Bank of Ireland's Growth fund, the bank's most popular equity SSIA fund.

Someone who took out an SSIA at Quinn Life in May 2001 and contributed the maximum €254 a month now has €27,710 in their fund if they chose the Quinn Life Celtic Freeway fund or €24,315 if they chose its Euro Freeway fund, compared to €23,287 if they were invested in Bank of Ireland's Growth fund.