With deposit rates on the floor, and markets continuing to rocket the S&P 500 is up 13 per cent so far this year its no surprise that disgruntled savers are wondering how they can earn more.
Given this potential risk appetite, as well as the wealth of savings built up over the pandemic, its also no surprise perhaps that the banks are eyeing the potential to step up their sales of investment products.
More than 16 billion alone was saved over the past year, while overall Irish deposit levels are at record highs, at some 128 billion, according to latest figures from the Central Bank of Ireland.
And much of this isnt even earning derisory sums on deposit its languishing in current accounts. Figures from AIB show that current account balances jumped by 24 per cent in 2020 to 32 billion.
Not only that, but billions on deposit may be forced to find a new home in the coming months and years, given the uncertainty around Ulster Bank and KBC Bank.
Stepping into this breach are retail banks, eager to ramp up their income by targeting savers turned investors.
KBC Bank (whether or not it gets to reap the rewards of this venture remains to be seen) launched a mobile app last month, allowing you to invest from as little as 10 a month in a range of six funds.
Bank of Ireland, meanwhile, is hosting a series of webinars aimed at helping both experienced and first-time investors, make the most of their money, while AIB is understood to be in advanced talks about a potential joint venture with Irish Life, in an effort to fill product gaps in the banks arsenal a gap that includes investments.
While an offering from a bank may be just what your personal investment strategy calls for, its worth understanding how the service works before leaping in.
Most banks act as intermediaries or brokers for investment products in other words they dont make the funds themselves, rather they sell them on behalf of other investment managers.
Typically, they will only offer a limited range of products, often from just the one provider.
