KBC research: 6 in 10 Irish customers are planning to save more
KBC Bank Ireland has carried out research showing how consumer savings patterns and priorities have changed in the period 2014 – 2018. The research comes as KBC sends out a message to Irish customers about KBC’s comprehensive and competitive savings and investments offering, which is now being expanded to include a new Wealth Management Division.
Overall, the research shows that the number of people with a savings account in 2018 has risen by 3% since 2014 to reach 82%. Specifically, more females and under 45s now have savings accounts compared to January 2014. With 6 in 10 planning to save more this year, those with a savings account also have more concrete savings plans than those without a savings account.
Significantly, the research shows that more people with a savings account are putting aside money at planned, regular intervals than before. A quarter (24%) of those surveyed now save a set amount weekly, up from a fifth (21%) in 2014, while 37% are putting aside a set amount every month, a jump from 29% in 2014. Less people reported saving “a set amount when I can” 16% compared to 24% four years ago.
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 financial safety still tops the list – a lesson from the recession - opening a savings account specifically for saving for a home (13% vs. 4% 2014) or holidays (10% vs. 7% 2014) is on the rise.
That said, 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.
Fergal O’Riagain, Director of Products, KBC Bank Ireland, 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. I would encourage anyone reviewing their savings and investments needs to get in touch and see how KBC can help. Call into one of our 16 hubs, contact us online and over the phone.”
KBC offers a range of competitive savings options for new and existing customers.
If you are a customer saving for something special, KBC offer an array of fixed, variable and savings accounts to facilitate you achieving your goal.
To learn more, click the link to access a list of deposit products and rates or alternatively give the deposit team a call on 1800 51 52 53 to open your KBC account today.
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Information correct as at 7th August 2018. Terms and Conditions apply.
KBC Bank Ireland plc is regulated by the Central Bank of Ireland.