Interesting Central Bank data on Deposit volumes

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Outside of the mortgage stats, the retail deposit volumes stats on the CBI website are also interesting.

- The amount of money in instant access accounts (which include current accounts) is on a constant upward curve.
- The amount of money in notice accounts remains static.
- Significant drop in the amount of money in both short dated (under 2 year) and also long dated term deposits.
- Roughly 80% of retail deposits are now in instant access account and notice accounts and 20% in term deposit accounts.

- Clearly reactions to lower rates. People don't feel that it is worth locking their money away at lower term deposit rates.
- With less and less money in term deposits, there is less long term funding via deposits for the banking sector.
 
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The Central Bank of Ireland have published their July 2016 stats [broken link removed].

- Deposits in instant access accounts (including current accounts) up YoY from 59 BN to 64 BN. Big increase.
- Deposits in notice accounts static YoY at 9 BN.
- Deposits in short dated term deposits down YoY from 21 BN to 16 BN. Big decrease.
- Deposits in long dated term deposits down sightly YoY to 3 BN.

Same trends keep continuing:
- More and more money is going into instant access accounts.
- Less and less money is going into term deposits.
- Trends are even more pronounced when you compare the movement over the last 5-8 years. Big trend away from term deposits.
- Lower long term funding for banks via long dated term deposits.
 
Does the 92 bn consist purely of household deposits?

It seems so.

Actually the Jun 2016 figure is closer to 97 bn.

Do most people realise that households have approaching 100 billion in deposits?

That's an average of maybe approx 40,000 per household.
 
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Yeah, non-retail deposits are reported separately. NFC (non financial corporation) deposits are displaying the same trends as retail deposits.

Whilst the average amount of deposits per household is large, the figure is almost certainly skewed by a small number with very large deposits.
 
Protocol said:
That's an average of maybe approx 40,000 per household.
Click to expand...

This seems a lot. But a person with a modest enough pension might have 10 times that amount in their pension fund, while others might have savings doing much the same thing.
 
The latest CBI data shows that long-dated (2 years+) term deposits are down 25.5% YoY. A massive drop especially given that these products don't reach maturity that frequently.

It seems that very few people are locking their money away for long period anymore thanks to low rates. This has a knock on effect on long term bank funding. Banks are becoming more and more dependent on short-dated deposits.
 
Its entirely logical. Why should somebody tie up their savings for a risible interest payment and the privilege of paying DIRT on it...
 
A tax-free, essentially risk-free, yield of 0.98% is hardly risible in a world where inflation is neglible. It's pretty much bang in line with the historic real yield on fixed-income investments with a similar duration.
 
Allowing for no DIRT it's 1.64% and not much inflation it's the best around and I've just filled my boots with a 5 year with some maturing funds from a 4 year bond.
 
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