Saving becomes more popular for Irish

Ireland has become a nation of savers, with 79% of people now having a savings account, according to KBC bank.

This figure is set to grow further as consumers feel that now is a good time to save. A third of consumers believe that now is a good time to save compared to 31% 12 months ago, according to the Nationwide UK (Ireland)/ESRI Savings Index.

Despite the increase in savers, there was also a rise in consumer confidence with a 3% increase in the percentage of people planning on spending their surplus cash.

Managing director of Nationwide UK (Ireland), Brendan Synnott, said: “The increase in the percentage of people who would spend surplus cash from 7% last year to 10% this year is also an encouraging sign for the economy as consumers feel more comfortable about their financial situations and are striving for a healthier save/spend balance.

“This could be a positive for the exchequer and reflects the sentiment that government policies and economic conditions are not pushing people towards precautionary saving as much as they have been in the past.”

However, the KBC Savings Barometer showed that Irish people remain cautious about spending, with 55% of respondents planning to increase their savings in 2012.

However, four in every five consumers dipped into their savings in the past year.

The Nationwide (Ireland)/ESRI Savings Index found that consumer optimism was subject to the changes in the eurozone crisis: as the situation improves, so too will consumer sentiment.

About 51% of consumers said that they would use surplus cash to pay off debts, including their mortgages, while 35% would put it into savings and 10% would spend surplus cash.

In terms of how much people are saving each month, 11% are saving up to €25, 13% are saving between €26 and €50, 31% are saving between €51 and €100 a month, 27% are saving between €101 and €200 and 18% more than €200.