Shoppers savvy at home and flash the cash abroad

DESPITE the credit crunch, savvy Irish consumers tempted by bargains are still splashing the cash abroad.

But back home, we are saving like never before and have squirrelled away almost €4 billion in the past year alone — almost a third of the total amount saved during the SSIA scheme between 2001 and 2007.

Figures compiled by Bank of Ireland show that the amount of money on deposits in banks, building societies, credit unions and post offices has soared to €140.4 billion by the end of June, with individuals owning €64 billion and businesses the remainder.

A year earlier, when the economy was still booming, the deposit market was worth €132.4 billion.

However, homeowners have less money in their current accounts as rising mortgage payments eat into their pay-cheque.

Despite the crunch on the home-front, it seems we leave our money worries behind when we head overseas.

A survey by Visa Europe of 300 men and 300 women over the age of 25 published yesterday shows that we just can’t resist a bargain abroad.

It showed that 90% of us are aware of currency exchange rates outside the eurozone and almost half believe we can make savings of between 21% and 40% on consumer goods, while enjoying a wider selection of goods.

And nearly three quarters of those surveyed who bought goods abroad said they believed the products were better value.

Clothes and shoes are the most popular purchase for the ladies, with half of all female shoppers saying they believed designer products are cheaper abroad.

But the men put their partner first with almost 40% reporting purchases of accessories like handbags and jewellery. The survey also showed that abroad:

* A third of consumers’ budgets is spent on eating out.

* 22% is spent on sight-seeing.

* 16% is spent on hitting the shops.

Some 44% admitted spending €1,000 on consumer goods abroad.

Jonathan Valentine, the senior vice president of marketing with Visa Europe, said the survey shows Irish shoppers are heading abroad in their droves for what they perceive as big savings on consumer goods.

“We are finding that consumers are increasingly using their debit and credit cards abroad due to ease of use and as the security features allay any fears they may have,” he said.

survey also ranked the top three situations when credit cards came to the rescue — booking and changing flights, for getting access to funds when a person ran out of money, and for replacing lost money.

There are more than 350 million Visa debit, credit and commercial cards in Europe.

In 2007, those cards were used to make purchases and cash withdrawals to the value of a staggering €1.3 trillion.

Visa cards account for 11% of all consumer spending at the point of sale in Europe.