Money in our bank accounts hits a record €103billion

THE amount of money people have in their bank accounts is at an all-time high at €103billion, Central Bank figures show.

Strong jobs growth means Irish adults have an average of €21,500 in the bank. People are now also saving €11.3billion more than they are borrowing from the banks here.

The Central Bank reported yesterday that household deposits soared by €633million in September.

The growing numbers of people at work, saving for a mortgage deposit and low inflation have combined to produce the record figure.

KBC Bank chief economist Austin Hughes explained that much of the deposits are salaries going into bank accounts.

‘Interest rates are very low. There are lots of reasons. But there isn’t a huge incentive to save – with the exception of the mortgage deposit requirement,’ he said.

He also pointed out that people are not borrowing in the same way as during the Celtic Tiger boom years.

‘There is less of a “oh the money’s come in, we have to spend it” attitude, and people using a credit card for everything.

‘If you look at the inflation rate, clothing and technology, they are all coming down in price. So, in that sense, there’s no rush to buy.’

Over the past year household deposit lodgements were €3.7billion higher than withdrawals from banks, growing by 3.7%.