State-backed investment account could be made available to children in future
The Irish government is planning to introduce a state-backed investment account for adults, with potential future expansion to include children. The scheme aims to encourage citizens to move cash savings into market investments.
Why it matters
This initiative reflects a broader economic strategy to increase household participation in capital markets and improve long-term financial planning.
A state-backed investment account specifically for children could be made available in the future following plans to roll out a savings and investment scheme for over-18s.
T naiste and Minister for Finance Simon Harris will publish details of how the savings and investment account will operate this week.
There are approximately 170 billion on deposit in Irish bank accounts which Harris previously said is "sitting idle".
The tax-advantage scheme is designed to encourage people to move their savings into market investments.
Irish households hold just 2.3 per cent of their financial assets in direct investments such as listed shares and debt securities, compared with an EU average of approximately 7.5 per cent.
A significant proportion of Irish household financial assets is instead held in cash and deposits, at 38 per cent compared with an EU average of 30 per cent.
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