Financial institutions report strong interest from customers in the Special Savings Incentive Scheme but say it is too early to assess the amount of funds they will take in.
Savers have almost a year - until April 30th, 2002 - to open an account. Each saver can have only one account which should be maintained for five years. Between £10 (€12.70) and £200 per month can be saved and the Government will add £1 for every £4 saved each month.
Although the scheme opened for savings only yesterday, some institutions invited interested customers to register in advance for their products.
Many AIB branches were looking for additional product brochures and Revenue declaration forms yesterday because of strong early demand, according to manager of the savings and investment centre Mr Hugh O'Keeffe. The urban areas of Dublin, Cork and Limerick were "exceptionally busy", he said. The bank has a dedicated special savings incentive scheme desk in each of its 330 outlets.
AIB had invited customers to "reserve" accounts from March 20th. Customers could fill out application forms and have their personal public service numbers verified but the Revenue declaration form could not be completed until yesterday.
While no figures for the numbers of applications or amounts of funds involved were available, Mr O'Keeffe said eight out of every 10 customers "reserving" accounts had opted for deposit accounts, divided almost evenly between fixed and variable interest rate accounts.
The main interest in investment accounts was in the managed fund which is invested in property, Government bonds, cash and global equities.
At the EBS Building Society, the first 50 customers in an early morning queue were given gold boxes as the society promoted its special savings incentive accounts. One customer won £1,000, two received £250 each while 47 received £25 each.
Hundreds of accounts were opened throughout the day for average monthly savings of between £50 and £100, with "a good number" at the maximum £200, according to general manager, funding, Mr Michael Keane. In addition, he reported a strong level of enquiries at all branches throughout the State particularly in shopping centres.
At Bank of Ireland, Mr Quentin Teggin described the response to the scheme as "phenomenal". Since mid-March just under 100,000 people had registered their interest, he said. No figures were available on the amount of funds involved.
"We are following up with these customers to work out which product is best for them. We are advising anyone who can only save for five years to take up a cash product while those prepared to save for seven to 10 years should look at the equity options. With equity products people should have the flexibility to stay longer than a set five-year term. The Government five-year plan will give them a wonderful start," Mr Quentin said.
Ulster Bank area director Mr Kevin Gallen reported a high level of customer demand in branches and on the telephone for products and for information. "Many customers looked for information or clarification on products and indicated they would take some days to decide which product to take," he said.
Hibernian Life and Pensions only started sending out its documentation yesterday. It reported "very strong" interest from customers but does not expect to see "a wall of business" coming into the accounts for about two to three weeks.
"Interest is very strong but I expect many people will hold off to see what is available before they make their decisions," according to Mr Ian Veitch.
Irish Life & Permanent said it had "thousands of pre-event registrations". Describing the response as "very positive", a spokesman said it was too early to say how many of these would translate into accounts and at what speed.
Financial institutions are offering a range of products. Savers can choose between relatively secure interest-earning deposit accounts or investment accounts where their savings will be invested in shares and other investments.
