Savers remained loyal to banks and credit unions even though they got nothing in return.
Deposit accounts are the most popular savings options, with only 17% of people putting money into a pension fund, according to a survey conducted for Aviva.
Only 7% of those who are employed have a savings plan with a life insurance company or an investment firm.
The survey, of 1,000 adults, was carried out by iReach Insights and found that deposit accounts are the most popular savings option.
Banks are slightly more popular than credit unions for savers.
However, credit unions are more popular with young people.
Men are slightly more likely than women to have a savings plan with a life insurance company or investment manager.
Savings in bank accounts and credit unions reached 144 billion euros in May, according to separate Central Bank data.
Aviva’s survey found that nine out of 10 people say they have some form of savings.
This is considered a high proportion as some commentators argue that many of those who lost their jobs during the Covid pandemic were unable to save.
Aviva’s Eoin Kennedy said people are taking a very conservative approach to where they put their savings.
“When looking at the different approaches people take, one apparent trend is that we still take a mostly conservative approach to our savings habits, with banks and credit unions still having influence over where people choose to hold and build their savings, across age profiles,” Kennedy said.
This is despite the fact that no interest is paid on most deposit accounts today and in some cases it may end up costing the saver to put their money on deposit.
Aviva’s survey asked respondents which savings or investment vehicles had performed best over the past 10 years: real estate, stock market or deposit accounts.
Nearly half of respondents said real estate, of which almost a third chose the stock market. Only 22% reported deposit accounts.
Mr Kennedy said there was a strong awareness among savers that deposit accounts are the worst performers in terms of investing.
He said it’s surprising that more people aren’t looking for better returns on their hard-earned money.