How do savers find a home for their money and get returns on deposits?
Returns on deposits are now trending to zero
“For many savers, the consolation to record-low returns is the fact that inflation, too, is almost non-existent. According to figures from the Central Statistics Office, prices fell by 1.2 per cent in the year to September.” File photograph: Getty
On one level it doesn’t make sense. Returns on deposits are now trending to zero but money is continuing to flow into deposits at record rates.
In fact, many banks are now offering zero returns on deposits yet figures from the Central Bank show households placed almost €11 billion on deposit in the first nine months of the year, pushing overall savings up to a record high of €121 billion.