Equity SSIAs outperforming others by 20%

Equity based SSIAs are outperforming their variable and fixed rate counterparts by as much as 20 per cent thanks to the strong…

Equity based SSIAs are outperforming their variable and fixed rate counterparts by as much as 20 per cent thanks to the strong performance of stock markets, according to the Bank of Ireland.

The bank's SSIA performance indicator shows that a customer who opened a Bank of Ireland equity SSIA in April 2002, saving the maximum of €254 would now have a balance of €18,965 - 15 per cent more than a customer who opted for a fixed deposit rate SSIA and 20 per cent more than an SSIA saver on the variable deposit rate.

"The growth levels predicted for markets in 2006 would see equity SSIAs mature with healthier balances than deposit SSIAs, rewarding those customers for the level of risk taken as a result of their stockmarket investment choice," said Dermot Murray, sales director, Bank of Ireland Life.

While equity SSIAs opened later in the scheme are showing the strongest out-performance over their deposit equivalents, the returns on equity SSIAs opened towards the beginning of the scheme are now 13 per cent greater than fixed rate deposit SSIAs and 18 per cent more than variable rate deposit SSIAs.