Ireland's New Initiative to Boost Personal Investments

Ireland is launching a new personal savings and investment scheme in 2024 to boost investment from the country's €170 billion in low-interest bank deposits. This initiative aims to diversify savings, align with EU recommendations, and improve financial literacy while offering a flat-rate tax option.

In a bid to shift Ireland's savings culture, the government will unveil a personal savings and investment scheme next year, according to Finance Minister Simon Harris. The plan is designed to channel some of the €170 billion currently in low-yield bank deposits into diversified investment portfolios.

The scheme will feature a flat-rate tax applicable to assets over a specific threshold, potentially simplifying the tax process for investments. This initiative, a priority for Harris since becoming finance minister, aligns with the European Commission's push for consumer-friendly savings accounts.

Currently, Irish households hold only 2.3% of their financial assets in direct investments, lagging behind the EU's 7.5% average. Central Bank Governor Gabriel Makhlouf emphasized the need for financial literacy and strong consumer protection as Ireland reduces barriers to retail investment.

(With inputs from agencies.)