The Financial Regulator has warned SSIA account holders to beware of committing their money to financial investments they do not fully understand, once their accounts mature.
The Regulator says it has conducted research indicating that one third of account holders will reinvest their money. Only one in ten plan to pay off their debts when the accounts mature.
The Financial Regulator's consumer affairs director, Mary O'Dea, said the 25% Government bonus on SSIA accounts was a very good return. However, this was now going and consumers needed to be fully aware that investments with higher returns are usually more risky.
She was speaking at the launch of an advice guide aimed at SSIA account holders called 'Your Little Black Book of SSIAs'. The guide is aimed at helping people decide what to do with their money.
Ms O'Dea also warned consumers in relation to investing in art and overseas property. 'Be cautious about any offers of high returns. When you are offered a very high return, this usually means you are taking a very high risk so make sure you inform yourself beforehand,' she warned.
Today's advice guide comes two months ahead of the maturity date for SSIAs taken out in the middle of 2001. Just over 41,100 accounts, or 3.8% of the total taken out, will mature at the end of May.
This figure will be dwarfed in April 2007 when more than 543,000 SSIA accounts, or just under 50% of the total number taken out, will mature.
The 'Your Little Black Book of SSIAs' guide can be accessed on IFSRA's website : www.itsyourmoney.ie under current publications.
