An Post has seen the number of new account openings for its current account offering soar in the past month.
The State-owned company said the volume of new current account openings rose by 25 per cent in March compared to the previous month, bringing the total number of An Post current accounts to just over 60,000.
One source suggested customers are currently keen to spread their savings among different institutions. The Government's deposit guarantee scheme protects depositors in the event a bank, building society or credit union is unable to repay their money. As long as the institution is authorised by the Central Bank of Ireland, deposits are covered up to €100,000 per person per institution.
While An Post also offers products such as post office savings bank (POSB) accounts, savings certs and savings bonds, it operates those services on behalf of the National Treasury Management Agency (NTMA).
Spike
Asked whether it has seen a spike in new account openings and increased purchases of savings certs and bonds, the NTMA said: “Whilst there has been a slight increase in investment in State savings products, the increase is not significant.” Some €17.9 billion was tied up in State savings products at the end of February, the latest month for which figures are available.
An Post, meanwhile, said that consumers have been attracted to its current accounts by its money-back cash refund, which offers cash after a customer spends with outlets such as Lidl, Supermac's and Elverys.
An Post launched its current account in 2017 to take on the pillar banks. The company also offers a credit card which offers zero per cent interest on balance transfers for the first 12 months, and loans which currently have the lowest loan rate on the market for amounts over €20,000.
