New research from KBC has found that the number of people with a savings account in 2018 has risen by 3% from 79% in 2014 to reach 82%.
The research shows that more people with a savings account are putting aside money at planned, regular intervals than before. Almost a quarter (24%) of those surveyed now save a set amount weekly, up from (21%) in 2014, while 37% are putting aside a set amount every month, a significant jump from 29% in 2014.
The research indicates that there has been a shift in some of the motivation for saving. When opening a savings account, more than 4 in 10 have a specific savings goal. While ensuring they have a financial safety net still tops the list, opening a savings account specifically for saving for a home (13% vs. 4% 2014) holidays (10% vs. 7% 2014) or car (5% vs. 2% 2014) is on the rise.
Those who cited having “a financial safety net” as their main priority in 2014 (35%) has fallen to 28% and the number of those motivated to save owing to “uncertainty about the future” in 2014 (30%) has halved to 14% of respondents in 2018. The numbers saving for children’s education (8%) or a long-term nest egg (8%) remains largely unchanged.
When asked to describe their savings plan for 2018, almost one-third (32%) said they were planning to save “much more” and 29% “a little more” than they did the year before, up from 28% and 27% respectively for 2014.
When it comes to influencing factors for opening a savings account, the ability to access funds is less of a priority for customers today (54%) than it was in 2014 (65%). Rate has grown as a reason to choose a savings account up from 41% in 2014 to 53%, as has the security of the bank to save with, at 41%, up from 36% in 2014.
Commenting on the research, Director of Products at KBC Bank Ireland, Fergal O’Riagain said, "Our research shows that savings remain a priority for consumers, with more people saving and saving more regularly. We know from our business that retail customers are moving into investments as part of a wider savings plan, be that saving for a new home, a family’s future needs or retirement at a future date."