{"id":670411,"date":"2026-10-31T01:34:14","date_gmt":"2026-10-31T01:34:14","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/670411\/"},"modified":"2026-10-31T01:34:14","modified_gmt":"2026-10-31T01:34:14","slug":"new-government-investment-accounts-could-generate-up-to-e400m-in-fees-for-banks-the-irish-times","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/670411\/","title":{"rendered":"New Government investment accounts could generate up to \u20ac400m in fees for banks \u2013 The Irish Times"},"content":{"rendered":"

Personal investment accounts<\/a> (PIAs) could generate up to \u20ac400 million in additional fee income for banks and other providers by 2035, according to Davy Stockbrokers.<\/p>\n

The brokerage estimated that, at peak, up to \u20ac4 billion in annual investment could flow into these accounts \u201calthough the path to this level is uncertain\u201d. <\/p>\n

This presented \u201ca potentially meaningful fee opportunity for providers able to capture the flow\u201d, it said.<\/p>\n

Greater administrative, tax and reporting requirements in Ireland would favour \u201cscaled providers\u201d such as banks and life assurance companies, Davy said. Online brokers are also expected to offer accounts.<\/p>\n

\u201cApplying a range of fee outcomes to our annual flow assumptions implies \u20ac100-\u20ac400 million of annual fee income by 2035, with the opportunity building as PIA assets accumulate,\u201d it said.<\/p>\n

\u201cThe onboarding and administrative requirements for PIAs should favour established providers over smaller, more niche providers, resulting in the Irish banks as natural beneficiaries,\u201d Davy said. <\/p>\n

Authors Thomas Ryan and Diarmaid Sheridan of Davy said the estimate of cumulative fees was based on an assumption that providers would charge 0.25-1 per cent of the account balance in annual fees.<\/p>\n

They said the research was based on a number of assumptions about the number of people who might invest and their likely level of investment, which were based on existing savings and earnings data.<\/p>\n

The new State-sponsored investment accounts, launched by Minister for Finance Simon Harris in the budget, will allow individuals to invest up to \u20ac12,000 a year in an account. <\/p>\n

The accounts, which will be launched in July next year, will have a tax-free threshold of \u20ac50,000 after which a flat rate of 1 per cent will be charged.<\/p>\n

[\u00a0Pension or the new investment account: where should your spare cash go?Opens in new window<\/a>\u00a0]<\/p>\n

The aim is to incentivise Irish savers to move some of the \u20ac170 billion held in low-interest-bearing deposit accounts back into capital markets. <\/p>\n

Harris has described this money as \u201csitting idle\u201d.<\/p>\n

Davy said the scheme would \u201callow for a meaningful tax advantage relative to existing investment structures.\u201d <\/p>\n

\u201cOur scenario analysis implies an effective tax rate of about 6 per cent over eight years compared with about 30 per cent for comparable investment vehicles,\u201d it said.<\/p>\n

The brokerage said the new scheme offered \u201ca compelling economic proposition for investors\u201d while noting international precedent pointed to a gradual adoption, with comparable UK and Swedish schemes having limited impact on existing savings patterns. <\/p>\n

\u201cPIAs should provide a welcome tailwind to Irish retail investing,\u201d it said.<\/p>\n

\u201cWe expect adoption to be gradual with flows captured at the margin from existing alternatives,\u201d it said.<\/p>\n

Recently published research from life insurance and pensions company Royal London Ireland looked at how much people believe they would set aside in the proposed PIA.<\/p>\n

[\u00a0Ireland\u2019s new personal investment accounts: How does it work if I have \u20ac1 or \u20ac12,000 to put in?Opens in new window<\/a>\u00a0]<\/p>\n

It suggested as many as six in 10 adults in Ireland could invest up to \u20ac250 per month in the scheme.<\/p>\n

It also indicated that men, on average, expect to invest more than three times as much as women, at \u20ac893 per month compared with \u20ac240.<\/p>\n

Harris first mooted his intention to introduce a new form of consumer-friendly investment account back in February.<\/p>\n

His department is understood to have examined similar types of accounts operating in other countries. Ultimately, it opted largely for the Swedish model despite strong industry lobbying in favour of the rival UK individual savings account model.<\/p>\n","protected":false},"excerpt":{"rendered":"Personal investment accounts (PIAs) could generate up to \u20ac400 million in additional fee income for banks and other…\n","protected":false},"author":2,"featured_media":670412,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[72,62697,61,60,180293,52860],"class_list":["post-670411","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-davy-group","tag-ie","tag-ireland","tag-personal-investment-account","tag-royal-london"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/670411","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=670411"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/670411\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/670412"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=670411"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=670411"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=670411"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}