Bank of Ireland Bi-monthly SSIA Performance Indicator

Bank of Ireland's Equity SSIAs continue to deliver more for savers
- equities currently up to 10% ahead of deposits

Equity based SSIAs continue to deliver better returns than both variable and fixed rate cash SSIAs, according to the Bank of Ireland bi-monthly SSIA Performance Indicator, which was published today (Monday, 21st November 2005). Unsurprisingly, equity SSIA holders who began saving towards the end of the scheme in April 2002 are continuing to benefit more from the equity out-performance.

For example, a customer who opened a Bank of Ireland equity SSIA in the last month of the scheme (April '02), saving the maximum of €254 a month into Bank of Ireland's Growth Fund, would now have a balance of €15,884 - 6% more than a customer who opted for a fixed rate SSIA and 10% more than an SSIA saver on the variable rate.

Illustrative SSIA account balances as at 1st November 2005

All figures assume maximum savings of €254 since commencement. The Growth Fund was the most popular of the fund choices offered by Bank of Ireland to equity SSIA holders, accounting for 78% of policies.

While equity SSIAs opened later in the scheme are showing the strongest out-performance over their cash equivalents, the returns on equity SSIAs opened towards the beginning of the scheme are now 3% greater than fixed rate cash SSIAs and 8% more than variable rate cash SSIAs.

Commenting on the latest figures Ronan Headon, Head of Savings, Bank of Ireland said: "While the equity SSIA out-performance isn't as large as in previous months, our figures again underline the greater growth potential of equity-based investments over the long-term. In spite of short-term fluctuations, which may occur from time to time, the risk taken on by equity SSIA savers is currently paying off."

"Looking forward, if equity markets deliver growth of up to 3% for the remainder of the SSIA term, then equity SSIAs will remain comfortably ahead of cash SSIAs at maturity. Although some savers have just over six months to go to maturity, we would advise our equity SSIA customers to continue saving for at least seven years, and ideally up to ten years, in order to increase their potential growth".

Recent research carried out on behalf of Bank of Ireland showed that a large proportion of SSIA holders intend to continue saving when the scheme matures. 67% of those surveyed said they intended to keep up the savings habit beyond the 5-year SSIA term.

"Undoubtedly a significant proportion of these are equity SSIA holders who know the benefit of saving for the longer term. We also believe that equity SSIA holders contribute significantly to the high number of SSIA holders intending to leave some or all of their lump sum invested", Ronan Headon concluded.

ENDS

For reference contact:

Catherine Moynihan
Marketing Manager
Savings & Investments
Bank of Ireland Life
Tel: 01 6172878

Mary Brennan
Group Corporate Communications
Bank of Ireland
Tel: 01 604 3838
Mob. 087 283 3646

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