Household savings reached another high in February of nearly €128bn as people reduced their spending due to the Covid-19 pandemic.

The latest statistics from the Central Bank show the level of money on deposit rose €1.3bn during the month, twice the €662m put aside in February last year.

Overall household deposits have risen by €15.7bn or 14% over the last year.

According to the bank, this represents the highest annual increase in deposits since the series began.

Lending to households during the month fell €138m, the second consecutive month where it has fallen.

This reflects lower demand for credit due to the Covid-19 restrictions.

Mortgage lending was down €83m, with annual mortgage lending of €613 million over the previous twelve months marking the lowest recorded level since November 2020.

Consumer lending also fell €70m during February.

However, net lending to non-financial businesses rose during the month, up €217m, while the net flow of deposits for such institutions continued to fall.

On an annual basis though, deposits for these businesses have risen nearly €12bn or 20% over the past year.

Yesterday, new research from the Central Bank suggested up to €11bn in additional savings had been put aside by households during the pandemic and as much as half of this could be released into the economy once restrictions are lifted.