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

[null,null,null,0,null,0,0,1,0,0,0,1,0,0,0,null,0,null,0,null,null,null,null,0,null,null,0,null,null

.

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?

Oscar Madison

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?