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Savings - Ireland - January 2014

“Although the appetite to save is clearly evident among Irish consumers, there are practical and motivational barriers to increased savings behaviour by consumers. Some simply cannot afford to save, while others have little option but to prioritise personal debt reduction. Furthermore, with increased taxation on interest earned, alongside interest rates that are close to all-time lows, there is very little financial incentive for Irish consumers (and NI consumers, in particular) to save.”

– Brian O’Connor, Production Manager

Some questions answered in this report include:

  • What level of savings do Irish consumers have?
  • How do Irish consumers contribute to their savings?
  • What savings and investments-related products do Irish consumers own?
  • Why do Irish consumers save?

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What's included

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Table of contents

  1. Introduction

      • Key themes in the report
        • Data sources
          • Definitions
            • Abbreviations
            • Executive Summary

                • The market
                  • Figure 1: Total deposits from private households, RoI and NI, 2009-13
                • Forecast
                  • Figure 2: Index of total deposits from private households, RoI and NI, 2009-19
                • Market factors
                  • Some indication that consumers' savings activity is increasing
                    • RoI savings ratio higher than NI ratio
                      • Consumer confidence on the up in NI and RoI
                        • Return on saving nothing to write home about for Irish consumers
                          • The consumer
                            • Most Irish consumers have 'some' savings – but it's minimal for many
                              • Figure 3: Value of consumers' savings and investments (excluding the value of main home and any pension savings), RoI and NI, January 2014
                            • Savings behaviour generally ad hoc and unstructured, rather than methodical
                              • Figure 4: Methods in which consumers contribute to their savings, RoI and NI, January 2014
                            • Most popular savings products tend to be safe and secure
                              • Figure 5: Ownership of savings and investment-related products, NI and RoI, January 2014
                            • Consumers saving for emergencies, unexpected events and security
                              • Figure 6: Intended purpose of money in savings accounts, NI and RoI, January 2014
                            • What we think
                            • Issues in the Market

                              • What level of savings do Irish consumers have?
                                • How do Irish consumers contribute to their savings?
                                  • What savings and investments-related products do Irish consumers own?
                                    • Why do Irish consumers save?
                                    • Trend Application

                                        • The Unfairer Sex
                                          • Prepare for the Worst
                                            • Mintel futures: Old Gold
                                            • Market Overview

                                              • Key points
                                                • Overall increase in saving among Irish consumers
                                                  • Figure 7: Expectations for savings, NI, October 2012-January 2014
                                                • More RoI consumers 'saving regularly', and fewer 'not saving at all'
                                                  • Figure 8: Savings behaviour, RoI, February 2013-January 2014
                                                • Preference to pay down debt over saving among RoI consumers
                                                  • Figure 9: Consumer intentions for surplus money, RoI, February 2013-January 2014
                                                • Consumers not convinced that it is a good time to save
                                                  • Figure 10: Agreement with statements relating to current savings environment, RoI, January 2013
                                                • Savings ratio higher in RoI than in NI, reflecting greater caution
                                                  • Figure 11: Household savings ratio, NI and RoI, Q3/Q4 2013
                                                • Irish consumer confidence on an upward trajectory
                                                  • Figure 12: Consumer confidence, NI, September 2008-December 2013
                                                  • Figure 13: Consumer assessment of own personal financial position now relative to last year, NI, December 2013
                                                • Confidence in RoI higher than at any point since mid-2007
                                                  • Figure 14: Consumer confidence, RoI, September 2008-December 2013
                                                • Low interest rates mean low returns on savings
                                                  • Figure 15: Bank of England and European Central Bank, base rates, 2008-14
                                                  • Figure 16: Interest paid on lump sum in one-year fixed-term deposit account, selected providers, RoI, February 2014
                                                  • Figure 17: Interest paid on lump sum in one-year fixed-term deposit account, NI, February 2014
                                                • Ageing population augurs well for providers of savings products
                                                  • Figure 18: Population, by age, RoI, 2011 and 2026
                                                  • Figure 19: Population, by age, NI, 2012 and 2024
                                                • Most consumers struggling to contribute to savings each month
                                                  • Figure 20: How consumers rate their current financial situation, NI and RoI, January 2013
                                                • Strong opportunities for non-mainstream providers to win market share
                                                  • Figure 21: Consumers who have bought or would consider buying banking products (such as credit card, savings account or current account) from a grocery retailer, NI and RoI, November 2013
                                              • Market Size and Forecast

                                                • Key points
                                                  • Value of deposits remained generally stable in 2013 at €133.5 billion
                                                    • Figure 22: Total deposits from private households, Ireland, RoI and NI, 2009-19
                                                  • Lingering economic anxiety and low rate of interest stifling growth
                                                    • Steady but unspectacular growth expected in years ahead
                                                      • Figure 23: Index of total deposits from private households, RoI and NI, 2009-19
                                                      • Figure 24: Total lending and total deposits, € billion, private households, RoI, 2003-13
                                                    • Interest rates lower than at any time in recent past
                                                      • Figure 25: Retail interest rates for deposits redeemable at notice, %, RoI, 2003-13
                                                  • Strengths and Weaknesses

                                                    • Strengths
                                                      • Weaknesses
                                                      • Competitive Context

                                                        • Key points
                                                          • Strong stockmarket performance could catch consumers' attention
                                                            • Figure 26: Year-on-year performance, % return, FTSE 100 and FTSE All-Share, 2004-13
                                                            • Figure 27: Equity market performance, UK (incl NI), RoI and world, 2008-13
                                                          • Buy-to-let investment back on the radar for cash-rich consumers
                                                            • Figure 28: Residential property price index, RoI, 2005-13
                                                          • NI property market beginning 2014 with strong momentum
                                                            • Overpaying on mortgage an option for consumers with spare cash
                                                            • Companies and Innovations

                                                              • Key points
                                                                • Examples of innovation
                                                                  • EBS launches free financial advice service
                                                                    • Santander launches mobile banking app for Android
                                                                      • AIB Junior Saver account focuses on educating younger savers on the value of money
                                                                        • Companies
                                                                          • Allied Irish Bank
                                                                            • An Post
                                                                              • Bank of Ireland
                                                                                • The Co-operative Bank
                                                                                  • Danske Bank
                                                                                    • EBS Limited
                                                                                      • First Trust Bank
                                                                                        • HSBC
                                                                                          • KBC Group
                                                                                            • NTMA
                                                                                              • Nationwide
                                                                                                • Permanent TSB
                                                                                                  • Post Office
                                                                                                    • RaboDirect
                                                                                                      • Santander
                                                                                                        • Ulster Bank
                                                                                                        • The Consumer – Value of Savings

                                                                                                          • Key points
                                                                                                            • Majority of Irish consumers have some savings and investments
                                                                                                                • Figure 29: Value of consumers' savings and investments (excluding the value of main home and any pension savings), RoI and NI, January 2014
                                                                                                              • Savings are minimal (or nil) for many
                                                                                                                • Women, 18-24s and C2DEFs most likely to have no savings
                                                                                                                  • Figure 30: Agreement with statement 'I have no savings or investments', by gender, age and socio-economic background, NI and RoI, January 2014
                                                                                                                • Older consumers have highest level of savings and investments
                                                                                                                  • Figure 31: Value of savings and investments (excluding value of main home and any pension savings), by age, RoI and NI, January 2014
                                                                                                                • ABC1s more likely than C2DEFs to have healthy savings
                                                                                                                  • Figure 32: Consumers with savings of £10,000-29,999 or €11,000-34,999, by social class, NI and RoI, January 2014
                                                                                                              • The Consumer – Savings Behaviour

                                                                                                                • Key points
                                                                                                                  • Savings behaviour ad hoc rather than structured or controlled
                                                                                                                      • Figure 33: Methods in which consumers contribute to their savings, RoI and NI, January 2014
                                                                                                                    • Lack of 'ordered saving' common among all demographics
                                                                                                                      • Figure 34: Agreement with statement 'I save whenever and whatever I can rather than a fixed amount at regular intervals’, by age, NI and RoI, January 2014
                                                                                                                    • ABC1s most likely to have fixed, regular savings regime
                                                                                                                        • Figure 35: Agreement with statement 'I have a direct debit set up to take a set amount each month', by social class, NI, January 2014
                                                                                                                      • Downturn has affected savings behaviour across the board
                                                                                                                          • Figure 36: Agreement with statement 'I have saved in the past but haven't managed to add to my savings or investments in the last 12 months’, by social class and work status, NI and RoI, January 2014
                                                                                                                      • The Consumer – Current and Intended Ownership

                                                                                                                        • Key points
                                                                                                                          • Safety and security to forefront where savings concerned
                                                                                                                            • Figure 37: Ownership of savings and investment-related products, NI and RoI, January 2014
                                                                                                                          • Savings accounts have broadly 'democratic' ownership profile
                                                                                                                              • Figure 38: Ownership of cash ISAs, by age and socio-economic background, NI, January 2014
                                                                                                                            • Pension ownership highest among men, ABC1s and older consumers
                                                                                                                                • Figure 39: Ownership of pensions, personal and company, RoI and NI, January 2014
                                                                                                                                • Figure 40: Ownership of company pension, by gender, age and socio-economic background, RoI and NI, January 2014
                                                                                                                              • Equity-based products favoured by men, ABC1s and over-55s…
                                                                                                                                  • Figure 41: Ownership of stocks and shares ISA, by gender, socio-economic background and work status, NI, January 2014
                                                                                                                                  • Figure 42: Ownership of individual company shares, by gender, age and socio-economic background, NI and RoI, January 2014
                                                                                                                                • …but there is appetite for equities among 'non-traditional owners'
                                                                                                                                    • Figure 43: Consumers who don't own but plan on buying individual company shares within the next year, by age, NI and RoI, January 2014
                                                                                                                                • The Consumer – Reasons for Saving

                                                                                                                                  • Key points
                                                                                                                                    • Main saving priorities: emergencies, unexpected events and security
                                                                                                                                      • Figure 44: Intended purpose of money in savings accounts, NI and RoI, January 2014
                                                                                                                                    • Men focused on retirement, women on general security
                                                                                                                                        • Figure 45: Consumers citing 'for retirement' as intended purpose of money in savings accounts, by gender, NI and RoI, January 2014
                                                                                                                                      • Age a major determinant in consumers' reasons for saving
                                                                                                                                      • Appendix

                                                                                                                                        • NI Toluna tables
                                                                                                                                          • Figure 46: Value of consumers’ savings and investments (excluding the value of main home and any pension savings), by demographics, NI, January 2014
                                                                                                                                          • Figure 47: Value of consumers’ savings and investments (excluding the value of main home and any pension savings), by demographics, NI, January 2014 (continued)
                                                                                                                                          • Figure 48: Methods in which consumers contribute to their savings, by demographics, NI, January 2014
                                                                                                                                          • Figure 49: Methods in which consumers contribute to their savings, by demographics, NI, January 2014 (continued)
                                                                                                                                          • Figure 50: Ownership of savings account, by demographics, NI, January 2014
                                                                                                                                          • Figure 51: Ownership of cash ISA, by demographics, NI, January 2014
                                                                                                                                          • Figure 52: Ownership of stocks and shares ISA, by demographics, NI, January 2014
                                                                                                                                          • Figure 53: Ownership of company pension, by demographics, NI, January 2014
                                                                                                                                          • Figure 54: Ownership of NS&I (National Savings and Investments) products, by demographics, NI, January 2014
                                                                                                                                          • Figure 55: Ownership of personal pension products, by demographics, NI, January 2014
                                                                                                                                          • Figure 56: Ownership of individual company shares, by demographics, NI, January 2014
                                                                                                                                          • Figure 57: Ownership of notice accounts, by demographics, NI, January 2014
                                                                                                                                          • Figure 58: Ownership of with-profits, unit-linked, money-market, distribution or guaranteed investment bonds, by demographics, NI, January 2014
                                                                                                                                          • Figure 59: Ownership of investment trust, by demographics, NI, January 2014
                                                                                                                                          • Figure 60: Ownership of other savings or investments, by demographics, NI, January 2014
                                                                                                                                          • Figure 61: Intended purpose of money in savings accounts, by demographics, NI, January 2014
                                                                                                                                          • Figure 62: Intended purpose of money in savings accounts, by demographics, NI, January 2014 (continued)
                                                                                                                                          • Figure 63: Intended purpose of money in savings accounts, by demographics, NI, January 2014 (continued)
                                                                                                                                        • RoI Toluna tables
                                                                                                                                          • Figure 64: Value of consumers’ savings and investments (excluding the value of main home and any pension savings), by demographics, RoI, January 2014
                                                                                                                                          • Figure 65: Value of consumers’ savings and investments (excluding the value of main home and any pension savings), by demographics, RoI, January 2014 (continued)
                                                                                                                                          • Figure 66: Methods in which consumers contribute to their savings, by demographics, RoI, January 2014
                                                                                                                                          • Figure 67: Methods in which consumers contribute to their savings, by demographics, RoI, January 2014 (continued)
                                                                                                                                          • Figure 68: Ownership of savings account, by demographics, RoI, January 2014
                                                                                                                                          • Figure 69: Ownership of company pension, by demographics, RoI, January 2014
                                                                                                                                          • Figure 70: Ownership of personal pension products, by demographics, RoI, January 2014
                                                                                                                                          • Figure 71: Ownership of individual company shares, by demographics, RoI, January 2014
                                                                                                                                          • Figure 72: Ownership of notice accounts, by demographics, RoI, January 2014
                                                                                                                                          • Figure 73: Ownership of with-profits, unit-linked, money-market, distribution or guaranteed investment bonds, by demographics, RoI, January 2014
                                                                                                                                          • Figure 74: Ownership of investment trust, by demographics, RoI, January 2014
                                                                                                                                          • Figure 75: Ownership of other savings or investments, by demographics, RoI, January 2014
                                                                                                                                          • Figure 76: Intended purpose of money in savings accounts, by demographics, RoI, January 2014
                                                                                                                                          • Figure 77: Intended purpose of money in savings accounts, by demographics, RoI, January 2014 (continued)
                                                                                                                                          • Figure 78: Intended purpose of money in savings accounts, by demographics, RoI, January 2014 (continued)

                                                                                                                                      Companies Covered

                                                                                                                                      To learn more about the companies covered in this report please contact us.

                                                                                                                                      Savings - Ireland - January 2014

                                                                                                                                      £1,095.00 (Excl.Tax)