ACCBank announced yesterday that it has appointed Eagle Star as its exclusive Personal Retirement Savings Account (PRSA) provider.
The bank said it chose Eagle Star ahead of a number of other institutions offering PRSAs following a strict selection process. This involved measuring investment performance, marketing, customer services, IT and commitment to the market.
In a statement, ACCBank's product development manager, Mr Fergus Crawford, said that Eagle Star emerged as the institution with the leading standard PRSA product in the Republic.
Its customers will be able to get contract details online. The bank is seeking a €10 minimum contribution for investors who use electronic transfer systems, and €50 from those who use any other means.
From September 15th, employers who do not already operate a pension scheme will be obliged to give their workers access to at least one PRSA. The Government introduced the scheme in an effort to encourage Irish people to provide for their pensions.
Earlier this month, it emerged that just 3,500 people had signed up to the PRSA scheme. That figure is expected to increase after September 15th.
The Pensions Board has licensed 10 institutions to provide PRSAs.
Yesterday, a note from Goodbody Stockbrokers said a Sunday Times survey showed that the tight commissions made it unattractive for brokers to sell standard PRSAs or offer them to low-income earners.
"Given that the Government-sponsored PRSA was specifically intended to penetrate the low-income bracket, this appears to make the product self-defeating," the broker said.
