Banks are reporting an increase in the amount of money customers are putting in their Special Saving Investment Accounts (SSIAs) but the predicted rush ahead of next month's Budget has not materialised so far.
Both Allied Irish Banks and Bank of Ireland say customers have been topping up their contributions but while AIB is advising its depositors to step up their payments ahead of a predicted amendment to the scheme, Bank of Ireland says they will not give formal advice based on speculation.
Commentators have for some time been arguing the scheme is too expensive and following the publication of the Book of Estimates last Thursday - in which spending was set below the rate of inflation - publicity surrounding the fate of SSIAs has increased.
Some commentators say the scheme should be scrapped but most believe the Minister for Finance, Mr McCreevy, will announce a cap on contributions on Budget Day. It is estimated the scheme could cost over €500 million per year in its current form, and with such tight constraints on Government spending, reining in SSIAs is seen as a feasible method for the Exchequer to save money.
Allied Irish Banks say they have been encouraging customers to place as much as possible into the accounts in recent weeks but a spokesman for the bank said they had not seen any significant increase in funds into the accounts today. He said customers have been increasing their deposits after the bank sent them letters in recent weeks advising them to increase their contributions.
"Activity might be slightly higher but not much more than in the last couple of weeks," an AIB spokesman said.
Bank of Ireland said they have seen increased activity in recent days but are not formally advising customers to maximise their contributions. "It's based on speculation so we think it would be wrong to advise customers in that way," Ms Anne Mathews, Media Relations Manager with B of I said.
"We have noticed an increase in activity but its difficult to quantify at this early stage," she added.
The maximum amount that can be deposited is €254 per month but the average contribution is estimated at around €150 per month, so if amendments take immediate effect on budget day, then most SSIA holders will only have one opportunity to increase their deposit.
Mr McCreevy has been criticised on several fronts over SSIAs but the Taoiseach, Mr Ahern, today voiced his support for the scheme.
Speaking on RTÉ Radio he said: "Some people argue that we have to take some heat out of the economy because you'd get a more realistic on inflation and wage demands and on other issues; and of course money in the savings schemes - which is very good for the economy - is doing precisely that."