Equity-based SSIAs continue to outperform

Equity-based SSIAs continue to deliver better returns than both variable and fixed rate cash SSIAs, according to Bank of Ireland…

Equity-based SSIAs continue to deliver better returns than both variable and fixed rate cash SSIAs, according to Bank of Ireland.

The bank's SSIA performance indicator, published today, shows that equity SSIA holders who began saving towards the end of the scheme in April 2002 are continuing to benefit more from the equity outperformance.

A customer who opened an equity based SSIA in April 2002, saving the maximum of €254 a month, would now have a balance of €15,884 - 6 per cent more than a fixed rate SSIA and 10 per cent more than a variable rate account.

Although equity SSIAs opened later in the scheme are showing the strongest performance, the returns on equity SSIAs opened towards the beginning of the scheme are now 3 per cent greater than fixed-rate cash SSIAs and 8 per cent more than variable rate cash SSIAs.

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Ronan Headon of Bank of Ireland said: "While the equity SSIA out-performance isn't as large as in previous months, our figures again underline the greater growth potential of equity-based investments over the long-term.

"In spite of short-term fluctuations, which may occur from time to time, the risk taken on by equity SSIA savers is currently paying off."

He added that although some savers have just over six months to go to maturity, the bank is advising equity SSIA customers to continue saving for at least seven years, and ideally up to ten years, to increase their potential growth.