Special Savings Incentive Accounts will bring 14 billion euro into the economy on maturity.
A study by Goodbody Stockbrokers estimates that the Special Savings Incentive Accounts (SSIAs) will result in economic growth of almost two per cent when savings mature in 2006. The study also predicts an average payout from the scheme of just over €13,500.
The economy looks set for cruise control.
The SSIA was developed in 2001 in an effort to cool down the economy by encouraging people to save rather than spend. Under the scheme, the government topped up deposits by 25 per cent. Upon maturity, it is expected that almost half of the 14 billion euro will be spent.
According to Goodbody Stockbrokers, 1.1 million people have an SSIA.
Each of those careful savers will receive a windfall of just under €14,000.
The report predicts that around €4 billion will be invested in property, €1.7 billion on holidays, €1.1 billion on cars, and €1.3 billion on home improvements.
Colin Hunt, chief economist at Goodbody Stockbrokers believes,
The economy will have a boom-like feel to it.
The government will also get back some of the €2.8 billion that the scheme cost through VAT and vehicle registration receipts.
An RTÉ News report broadcast on 26 August 2004. The reporter is Robert Shortt.
