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Friday 19 September 2014

Drop in household savings as customers move money to current accounts

Published 29/08/2014 | 11:44

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Households have reduced the amount of money they have on deposit in banks, but still have billions of euro stashed away.

Charlie Weston

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There was a reduction of €30m in the savings of households held in banks here in July.

This took the total savings of households in banks down to €91.25bn, new figures out this morning from the Central Bank show.

But even though households are putting less into savings accounts they have increased the amount of money going into current accounts, a breakdown of the figures shows.

There was a rise of €400m in the funds put in by households to what the Central Bank calls overnight  deposits, which includes current accounts.

Experts said this reflects the fact that the leading banks impose bank charges on consumers if they do not hold set levels of funds in their current accounts.

Bank of Ireland requires its current accounts to have a credit balance of €3,000 at all times to avoid transaction charges.

And more money was paid off existing mortgages than the amount taken out in new mortgages.

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