Cyprus sparks return to saving

Uncertainty about the economy has led to consumers spooked by banking problems in Cyprus to return to hoarding their cash for a rainy day, according to the Nationwide UK (Ireland) ESRI Savings Index for March.

The managing director of Nationwide UK (Ireland) Brendan Synnott believes consumers have been spooked by the resurrection of the European debt crisis in Cyprus.

“It is possible that the financial situation in Cyprus has contributed to anxiety, since indicators on the Irish economy have been generally positive,” he said.