The Irish are a nation of savers after all and big savers at that, judging by figures released yesterday by the Minister for Finance Mr McCreevy and British-based mortgage bank Northern Rock are anything to go by.
Irish savers poured almost #350 million (£275 million) into the coffers of Northern Rock during the first six months of this year, with an average customer managing to put £35,000 (#44,440) on deposit, according to the bank.
The take up of the special savings incentive scheme also increased substantially last month, after a slow start in May. Savers invested more than £19.2 million in June, compared to £6 million in May, the first month of the scheme.
"As anticipated, the take up grew significantly and that is likely to continue with a colossal amount likely to be invested next March and April on the eve of the April 30th deadline," he said.
Since its launch in 1999, Northern Rock has signed up more than 11,000 new Irish customers, with at least 7,000 opening accounts within the last year.
Some 90 per cent of customers subscribe to the bank's Direct Saver account, which guarantees a return 0.25 per cent higher than the European Central Bank (ECB) base rate until January 1st, 2002. A similar account is offered to business customers.
The bank's special savings incentive account (SSIA) also tracks the ECB base rate but limits this return to savers who lodge £200 (#254) per month for the life of the scheme. So far, 1,500 Irish savers have signed up to an SSIA from Northern Rock and a company spokesman yesterday said that the bank had received 4,000 inquiries on the offering.
"There's possibly still a large pipeline of people out there," said the spokesman, suggesting that "more of a push" on the schemes from Government would help to encourage their uptake generally.
Northern Rock offers its services by post, by phone or via the internet. Internet business accounts for 13 per cent of the bank's Irish business, with the majority of customers based in or near Dublin.
