We're saving €61m a day (that's €500 for every adult)

Sheep Shagger

Irish households saved over €61 million a day last month, according to new figures from the Central Bank. That’s around €500 over the month for every adult in the State.

The additional €1.9 billion n household deposits brought the figure to a new record of €126.4 billion, continuing a run over recent months.

With Level 5 restrictions in place across the State, household deposits continued recent trends by growing substantially. Meanwhile, consumer lending recorded a sharp decrease as repayments exceeded new drawdowns by €205 million in net terms.

Net lending to households contracted by €322 million in January, reflecting a continuing trend of subdued lending flows. In annual terms, repayments exceeded new lending by €216 million or 0.3 per cent, representing the largest decline since April 2017.

Loans for house purchases decreased by €111 million in net terms over the month. In annual terms, the growth rate in January continued on a downward trend, but remained positive, at 0.8 per cent, down from 1.9 per cent a year earlier.

Consumer lending decreased in net terms by €205 million over the month. In annual terms, repayments exceeded new lending by €747 million or 5.9 per cent, marking the most negative annual growth rate since December 2014.

In January, net flows in convenience credit debt and overdrafts turned negative, while term lending and extended credit card debt continued to decline.

Overall, consumer and other household lending declines would have been larger if it was not for the agreement of payment breaks.

Deposits from households continued to reach new heights, and stood at €126.4 billion at the end of January.

Over the month, households’ deposits increased by €1.9 billion. In annual terms, household deposits recorded a net inflow of €15.1 billion or 13.5 per cent.



Overnight deposits, which include current accounts, were the driver of the monthly and annual increases in household deposits.

Net lending to non-financial corporations (NFCs) also remained negative in January, contracting by €132 million. On an annual basis, loans to NFCs declined by €1.4 billion or 3.6 per cent, mainly driven by short-term loans.

The monthly net flow in deposits from NFCs turned negative in January, amounting to minus €925 million.

This decrease was mainly attributable to overnight deposits and repurchase agreements. On an annual basis though, NFC deposits increased by €12.3 billion, resulting in an annual growth rate of 20.4 per cent.

Elsewhere, total bank lending to Irish resident sectors declined by 0.2 per cent in the year, as the increase in lending to monetary financial institutions partly offset the decline in lending to the private sector of 2.1 per cent in annual terms.

Banks’ holdings of deposits from the Irish resident private sector continued to record strong inflows, with annual growth reaching 15.2 per cent. Irish resident households remain the largest contributing sector to deposits on banks’ aggregate balance sheet.

Irish-resident banks’ outstanding borrowing from the Central Bank as part of Eurosystem monetary policy operations remained unchanged in January, standing at €7.3 billion.

https://www.google.com/amp/s/www.irishtimes.com/business/financial-services/61m-a-day-the-amount-irish-households-are-saving-1.4495887%3fmode=amp

I know some people are saving as they are not paying childcare etc but with record numbers having to rely on the state while we get through COVID, is this really thr case?

If so, it really does show that for some, the pandemic has been good for them finance wise while for others it's been horrendous.

Harry Palmr

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.

Either my current balance or the machine having a nervous breakdown

Kivaro

That money will be badly needed in order to pay the huge Covid bill when it becomes due. We are a highly indebted country, one of the most indebted countries in the world actually, and with our public spending going through the roof and projected to get a good deal worse, something has to break.

JustAThought

Don’t worry. Many many middle class hardworking people are already broken. Our male suicide rates are through the roof - men young and old who walk in despair down to sheds and rivers and kill themselves because they no longer have any hope. And our government dosn’t even bother to measure despairing Irish youth and families abandoning his country for a less crucifying regime elsewhere - one where half your salary and more isn’t taken in tax and stealth charges every month and where trying to pay a mortgage a basic house with a 2 or 3 hour daily round trip commute into work will bleed your bones dry ona managers salary.

I wonder who has saved this e500? People now getting double their normal working wage on the pup scheme? Or people living beside their mammies claiming they’re homeless getting 1000 dile a month plus benefits and paying twenty quid rent a week for a 3 bed house they will live in forever and shriek about their entitlements on the back of crucifying committed fathers & families working to pay their own way and not be a burden on society and the working poor paying 50% tax on every pound.

Rodin

Anyone with a steady income who spends the disposable part of that on eating out, travelling, holidays is no doubt better off.
Also saving a fortune on petrol/diesel/tolls.

We are far too reliant on credit anyway.

Rodin

JustAThought wrote: »

Don’t worry. Many many middle class hardworking people are already broken. Our male suicide rates are through the roof - men young and old who walk in despair down to sheds and rivers and kill themselves because they no longer have any hope. And our government dosn’t even bother to measure despairing Irish youth and families abandoning his country for a less crucifying regime elsewhere - one where half your salary and more isn’t taken in tax and stealth charges every month and where trying to pay a mortgage a basic house with a 2 or 3 hour daily round trip commute into work will bleed your bones dry ona managers salary.

I wonder who has saved this e500? People now getting double their normal working wage on the pup scheme? Or people living beside their mammies claiming they’re homeless getting 1000 dile a month plus benefits and paying twenty quid rent a week for a 3 bed house they will live in forever and shriek about their entitlements on the back of crucifying committed fathers & families working to pay their own way and not be a burden on society and the working poor paying 50% tax on every pound.

What 'poor' person pays 50% "on every pound" tax, marginal or otherwise?

Electricity and gas prices are increasing!

It probably won't end there either!

mikhail

The mean saving is pretty irrelevant, as it's likely very uneven, with some households haemorrhaging money. Not that a newspaper article would ever release a bloody distribution, in case that'd offend people who think maths is the work of the devil.

Rodin wrote: »

What 'poor' person pays 50% "on every pound" tax, marginal or otherwise?

He didn't construct his argument with facts, and you won't change his mind with them either.

titan18

Kivaro wrote: »

That money will be badly needed in order to pay the huge Covid bill when it becomes due. We are a highly indebted country, one of the most indebted countries in the world actually, and with our public spending going through the roof and projected to get a good deal worse, something has to break.

They can fcuk right off if they try to tax or take my savings.

Sheep Shagger

Kivaro wrote: »

That money will be badly needed in order to pay the huge Covid bill when it becomes due. We are a highly indebted country, one of the most indebted countries in the world actually, and with our public spending going through the roof and projected to get a good deal worse, something has to break.

Since when do peoples savings help pay the national debt?

I get some people are better off but with a million people on a maximum of €320 odd a week (state support) there must be some people saving thousands.

zell12

Irish...saved over...around €500 over the month for every adult in the State.

That €500pm/€115pw saving per adult is very feasible, that amounts to a third of the €350pw PUP rate
There is not much consumer spending happening or holidays etc. Not everyone has a large mortgage/rent. That money has to go somewhere

Sheep Shagger

zell12 wrote: »

That €500pm/€115pw saving per adult is very feasible, that amounts to a third of the €350pw PUP rate
There is not much consumer spending happening or holidays etc. Not everyone has a large mortgage/rent. That money has to go somewhere

Can you live on €235 after bills, rent/mortgage food etc....i would have thought that was pretty tough to do.

Clearly some people will be able but not most, not everyone is on the higher rate either. I guess some could be saving to pay their tax bill!

Housefree

Sheep Shagger wrote: »

Since when do peoples savings help pay the national debt?

I get some people are better off but with a million people on a maximum of €320 odd a week (state support) there must be some people saving thousands.

https://en.m.wikipedia.org/wiki/2012%E2%80%932013_Cypriot_financial_crisis

It happens

zell12

Yes, many can in fact.
Rent supplement is available to those on PUP, not everyone has a car, food budgets can be slashed with more available cooking time,no travel due to 5km radius, etc.
This charity outlines a very generous minimum standard of living

Multipass

Someone else has my 500 savings, nothing but worse debt here.

cal naughton

Only a matter of time before the bank's introduce negative interest rates on deposits over 100k or maybe over 200k to make it politically viable.

This will then lead to depositors seeking returns elsewhere . Elsewhere in this case will be land and property . This in turn will lead to a Celtic tiger mark 2 .

Also inflation will then rise which is the political saviour of an overspending country that's deep in debt.

BrianD3

The PUP is a generous payment for some and possibly many people. Not everyone has rent, mortgage or children. Some will have lost jobs and moved back in with retired parents and now find that they are saving more than they were when they were working and paying rent. Maybe their former landlord is saving less though but may not have been properly declaring his earnings anyway.

Obviously working from home can result in significant savings.

Watch for vested interests eyeing up those savings. How long before we have a Boris Johnson type strategy of getting civil servants back to their offices so that they might buy coffee and sandwiches in city centre shops.

Buddy Bubs

Bit of a non story here and shows the limitations of using an average.

Couple with 2 x pup payments and bills to pay, no savings and probably borrowing

2 professionals in a couple earning 80/90/100k + and very little to spend on after essentials....saving loads

Buddy Bubs

Bit of a non story here and shows the limitations of using an average.

Couple with 2 x pup payments and bills to pay, no savings and probably borrowing

2 professionals in a couple earning 80/90/100k + and very little to spend on after essentials....saving loads

tayto lover

Kivaro wrote: »

That money will be badly needed in order to pay the huge Covid bill when it becomes due. We are a highly indebted country, one of the most indebted countries in the world actually, and with our public spending going through the roof and projected to get a good deal worse, something has to break.

It will build a few houses for the hordes of asylum seekers who are making their way through Europe to get here.

Kivaro

Kivaro wrote: »

That money will be badly needed in order to pay the huge Covid bill when it becomes due. We are a highly indebted country, one of the most indebted countries in the world actually, and with our public spending going through the roof and projected to get a good deal worse, something has to break.

The cost of borrowing is the cost of interest - which is low right now. I don’t see much chance of austerity in the future.

zell12

BBC - accidental savers 'created by Covid crisis'

More than 6m people have become "accidental savers" during the pandemic by keeping jobs while facing fewer outgoings
However, more than 9m people had to borrow more than they usually would by December, owing to the coronavirus crisis

coinop

Anyone who is keeping their money in an Irish savings account with their 0.1% interest rates is an idiot. No exceptions. Not even enough to beat inflation. Your money is evaporating before your eyes. For some inexplicable reason, the Irish are averse to investing in the stock market. The average American keeps up to date with S&P 500 and enjoys 10% annual returns. In the current bull run, it's actually more like 20%.

happyoutscan

coinop wrote: »

Anyone who is keeping their money in an Irish savings account with their 0.1% interest rates is an idiot. No exceptions. Not even enough to beat inflation. Your money is evaporating before your eyes. For some inexplicable reason, the Irish are averse to investing in the stock market. The average American keeps up to date with S&P 500 and enjoys 10% annual returns. In the current bull run, it's actually more like 20%.

I'd like to hear more.

zell12

happyoutscan wrote: »

I'd like to hear more.

Wanderer78

Yup, I think this could very well be the most unequal recovery ever experienced, I think some sectors will boom, some will just tip along and others will crash into oblivion. I'm expecting the property situation to worsen, particularly for younger generations, as many of them have been very badly affected by covid, and with that amount of saving going on, they don't have a hope of competing in that market. The government better get a move on with borrowing and building, particularly for these folks, or they're truly fcuked

Wanderer78

coinop wrote:

Anyone who is keeping their money in an Irish savings account with their 0.1% interest rates is an idiot. No exceptions. Not even enough to beat inflation. Your money is evaporating before your eyes. For some inexplicable reason, the Irish are averse to investing in the stock market. The average American keeps up to date with S&P 500 and enjoys 10% annual returns. In the current bull run, it's actually more like 20%.

....and thank god, stock market crashes never occur, diversify, diversify, diversify! That boom will more than likely crash at some stage, there's only so much some can afford to gamble with, and I suspect many Americans could never afford to even think about investments, as many work more than one job, just to survive, and desperately need that stimulus payment, so I'm not so sure about your statement there!

coinop

Wanderer78 wrote: »

....and thank god, stock market crashes never occur, diversify, diversify, diversify! That boom will more than likely crash at some stage, there's only so much some can afford to gamble with, and I suspect many Americans could never afford to even think about investments, as many work more than one job, just to survive, and desperately need that stimulus payment, so I'm not so sure about your statement there!

Thanks for proving my point that the average Paddy is clueless about the stock market. Kindly see this chart showing the S&P 500 performance over the past 50+ years. Stocks go up over time. Yes, there are dips as seen in 2008 and when the lockdowns started in March 2020, but guess what, the stock market quickly recovered (very quickly, actually) and is now at all time highs. Once you don't sell and hold until the recovery to new highs, you win. It's that simple. I'm going to repeat my previous statement.

Anyone who is keeping their money in an Irish savings account with their 0.1% interest rates is an idiot. No exceptions.

Cilldara_2000

coinop wrote: »

Anyone who is keeping their money in an Irish savings account with their 0.1% interest rates is an idiot. No exceptions. Not even enough to beat inflation. Your money is evaporating before your eyes. For some inexplicable reason, the Irish are averse to investing in the stock market. The average American keeps up to date with S&P 500 and enjoys 10% annual returns. In the current bull run, it's actually more like 20%.

It entirely depends on how much. Everyone should have their six months expenses emergency fund saved in the bank. After that, max out your pension contributions. Only then go for personal investing.

Gael23

When all this hits the property market in the summer it’s going to be nasty

Buddy Bubs

Gael23 wrote: »

When all this hits the property market in the summer it’s going to be nasty

In what way?

highdef

"We're saving €61m a day (that's €500 for every adult)"

Well that's a very confusing title that initially led me to believe that every adult was somehow saving €500 a day!

dmigsy

JustAThought wrote: »

Don’t worry. Many many middle class hardworking people are already broken. Our male suicide rates are through the roof - men young and old who walk in despair down to sheds and rivers and kill themselves because they no longer have any hope. And our government dosn’t even bother to measure despairing Irish youth and families abandoning his country for a less crucifying regime elsewhere - one where half your salary and more isn’t taken in tax and stealth charges every month and where trying to pay a mortgage a basic house with a 2 or 3 hour daily round trip commute into work will bleed your bones dry ona managers salary.

I wonder who has saved this e500? People now getting double their normal working wage on the pup scheme? Or people living beside their mammies claiming they’re homeless getting 1000 dile a month plus benefits and paying twenty quid rent a week for a 3 bed house they will live in forever and shriek about their entitlements on the back of crucifying committed fathers & families working to pay their own way and not be a burden on society and the working poor paying 50% tax on every pound.

If by saying male suicide rates are 'through the roof' you mean 'generally declining year on year', you'd be right. Suicide is an important and sensitive topic. There's no detailed, reliable data available for 2020 yet. Claiming that rates are through the roof without any evidence is poor posting.

Actual numbers up to 2019 (report from Jan 21)


Source:
https://www.hse.ie/eng/services/list/4/mental-health-services/connecting-for-life/publications/nosp-briefing-jan-2021.pdf

Good piece on pandemic suicide increase claims:
https://www.thejournal.ie/suicide-ireland-august-claim-33-deaths-factcheck-5192698-Sep2020/

Rodin

dmigsy wrote: »

If by saying male suicide rates are 'through the roof' you mean 'generally declining year on year', you'd be right. Suicide is an important and sensitive topic. There's no detailed, reliable data available for 2020 yet. Claiming that rates are through the roof without any evidence is poor posting.

Actual numbers up to 2019 (report from Jan 21)


Source:
https://www.hse.ie/eng/services/list/4/mental-health-services/connecting-for-life/publications/nosp-briefing-jan-2021.pdf

Good piece on pandemic suicide increase claims:
https://www.thejournal.ie/suicide-ireland-august-claim-33-deaths-factcheck-5192698-Sep2020/

We hear all the time that suicide is increasing when really we're just hearing more about each case because of social media.
Too many people with an opinion don't back it up with evidence.
It's great that suicide is decreasing.

Gael23

Buddy Bubs wrote: »

In what way?

Construction closed for 5 months and cash ready buyers chasing scarce supply

Strumms

titan18 wrote: »

They can fcuk right off if they try to tax or take my savings.

If they tried that the sale of these would go through the roof...



Bank accounts would be practically emptied....

You get taxed on the money you earn, so what you get to keep and save would be taxed again too ?

869.87 million in overseas aid was spent by the government in 2019

Over 1.3 billion over 20 years was spent facilitating the arrival, welfare etc of people entering the asylum system here...

IF the pot is not sufficient enough to provide Irish people, Irish taxpayers with the revenue they need and the services and help demanded... we simply cut our cloth to meet our measure...

- limit or suspend overseas aid.

- limit or suspend the number of asylum applications that are processed here, so a person on arrival is told... “ we cannot accept your application, we are not in a position to...I’m sorry, here is a one way ticket back to your country of origin “

Mrcaramelchoc

Kivaro wrote: »

That money will be badly needed in order to pay the huge Covid bill when it becomes due. We are a highly indebted country, one of the most indebted countries in the world actually, and with our public spending going through the roof and projected to get a good deal worse, something has to break.

Thanks buzz

Wanderer78

coinop wrote:

Thanks for proving my point that the average Paddy is clueless about the stock market. Kindly see

Haha, my stocks are doing very well thanks, ive been involved for many years now. Again you'll find many average Joe's and Mary's aren't involved because they're already struggling to keep a roof over their head, similar story in the states

MadYaker

Kivaro wrote: »

That money will be badly needed in order to pay the huge Covid bill when it becomes due. We are a highly indebted country, one of the most indebted countries in the world actually, and with our public spending going through the roof and projected to get a good deal worse, something has to break.

Do people really think this is actually going to happen? Our government borrowing from a central bank is not the same as you or I borrowing from a credit union. There isn't going to be a bill. Go read about international economics.

But yeah I've never saved money in my life at the rate I've been saving in the last year or so, it's a good thing, all that pent up spending will help the economy.

Wanderer78

MadYaker wrote:

Do people really think this is actually going to happen? Our government borrowing from a central bank is not the same as you or I borrowing from a credit union. There isn't going to be a bill. Go read about international economics.

....Oh I wouldn't be getting too excited there, fiscal conservatives are in government, and they just love balancing their budgets, so....

lisasimpson

The will be a boom of some sorts after all this. Certain sectors will be dependant on the savers spending all this money hotels, resturants, beauty industry,car dealership etc. Should also go someway in reviving some of our towns and villages in rural ireland as people will be drawn to get more bang for their buck when buying a home outside the large cities esp if their employer allows for hybrid work situations.

coinop

MadYaker wrote: »

Do people really think this is actually going to happen? Our government borrowing from a central bank is not the same as you or I borrowing from a credit union. There isn't going to be a bill. Go read about international economics.

You're wasting your time trying to have a meaningful discussion about economics on Boards.ie. In my experience, very few understand the topic at all. The type to pat themselves on the back over their 50,000 euro tucked away in a Credit Union savings account, not realizing that the value of their money is being chipped away by inflation everyday. If you're not investing in the market, you're losing money. A poster above doesn't understand the difference between investing in individual stocks and index funds.

coinop

coinop wrote: »

You're wasting your time trying to have a meaningful discussion about economics on Boards.ie. In my experience, very few understand the topic at all. The type to pat themselves on the back over their 50,000 euro tucked away in a Credit Union savings account, not realizing that the value of their money is being chipped away by inflation everyday. If you're not investing in the market, you're losing money. A poster above doesn't understand the difference between investing in individual stocks and index funds.

And when you take your money out of the market, the Government will take half your profit in tax.

Geuze

MadYaker wrote: »

Do people really think this is actually going to happen? Our government borrowing from a central bank is not the same as you or I borrowing from a credit union.

The ECB does not lend to Govts. That does not happen.

You may be referring to QE, where the ECB buy Govt bonds in the secondary market.

Kivaro

MadYaker wrote: »

Do people really think this is actually going to happen? Our government borrowing from a central bank is not the same as you or I borrowing from a credit union. There isn't going to be a bill. Go read about international economics.

Well, that is a weird opinion. No bill?
From our Finance Minister today:

“The idea that deficits don’t matter, especially for a small economy without the possibility to print its own currency, is so far off the mark as to be dangerous in evaluating policy options in the future,” Mr Donohoe told an event organised by the Economic and Social Research Institute (ESRI).

Sounds like he was preparing us for tax increases in order to pay for the Covid bill, just like the Chancellor in the UK said yesterday.

Timistry

But hey, if you are earning and saving, they want to know where you got every penny you lodge. what a joke

Kid Charlemagne

titan18 wrote: »

They can fcuk right off if they try to tax or take my savings.

Even the Shinners woundnt be brazen enough to pull a stroke like this?

The Blueshirts raided our pension pots a few years ago mind so nothing would surprise me.

the Minister for Finance introduced a temporary Pension Levy of 0.6% of pension fund assets, payable for each of the 4 years 2011 - 2014 and an additional levy of 0.15% for 2014 and 2015. ... Therefore, in 2014 the levy increased to 0.75% and in 2015, the levy was 0.15%

https://www.pensionsauthority.ie/en/lifecycle/tax/tax_on_pension_assets/#:~:text=However%2C%20the%20Minister%20for%20Finance,%2C%20the%20levy%20was%200.15%25.

Kid Charlemagne

Timistry wrote: »

But hey, if you are earning and saving, they want to know where you got every penny you lodge. what a joke

Well to be fair I think thats more got to do with money laundering and tax evasion. As a paye worker (sucker) without any opportunity to pull a stroke ive never had any queries.

The One Doctor

Lucky to have no debt here, savings have risen in the last year, have a bit of a buffer in case of emergencies.

And, even luckier, we've already had coronavirus with mild or no symptoms. We live in a nice quiet rural area so lockdown isn't stifling, but I'd love to see my family more often.

zell12

titan18 wrote: »

They can fcuk right off if they try to tax or take my savings.

They already tax it, caller.

DIRT is charged at 33% on all interest payments
2019 the rate was 35%
2018 37%
2017 39%
2014-2016 41%
2013 33%

Govt will want people to spend their hoarded money in Ireland to boost economy.

zell12

TheJournal.ie commissioned a survey of saver or spender
Red C interviewed a random sample of 1000+ adults online 4-10 March 2021.
22% of people say income is down
65% say income the same
13% say income is up

68% of people saved their cash rather than spending it

Economists expect the unwinding of these built-up savings to contribute to a consumer boom towards the end of 2021 and into 2022, which could be a key factor in Ireland’s economic recovery.
“If a relatively large share of the 18-34 age category is saving, it means that some of that money may go towards the property market which may in turn lead to a pick-up in house price inflation.”