Irish savers missing out on potential €485,000 windfall by leaving savings sitting on deposit, new research shows

• Independent research carried out by economist David W. Higgins on behalf of IG outlines the cost of Irish people’s reluctance to invest their savings
• Simon Harris urged to outline his plans for personal investment accounts ahead of Budget
• IG creates giant installation in Dublin Mountains to highlight the €175bn currently sitting on deposit in Irish banks

Dublin, 26 August 2026 - Irish households are missing out on major potential windfalls by leaving their money on deposit instead of investing it, independent research commissioned by the investment platform IG has revealed. 

The research by economist David W. Higgins for IG reveals that investing €300 every month for 30 years could build a fund worth almost €598,000, compared with just €112,000 if the money remained in a cash savings account after Deposit Interest Retention Tax (DIRT). This results in a difference of €485,333.

The headline figure assumes the Government pushes ahead with plans to introduce a Personal Investment Account in the upcoming Budget which will eliminate the existing deemed disposal rule and introduce a tax-free allowance for investment gains. However, even if the deemed disposal tax was retained, the investor would still finish with approximately €412,000 - almost €300,000 more than the cash saver.

The research was commissioned by IG as part of its 'Don't Sleep On It' campaign encouraging Irish households to put long-term savings to work by investing rather than resorting solely to retaining savings on deposit. Recent Central Bank data revealed that Irish households hold approximately €175 billion in cash deposits, highlighting just how much money is potentially available to be invested. 

The amount that Irish people are missing out on earning has been dubbed by IG as the “mattress penalty”, since leaving cash on deposit is equivalent to the old-fashioned practice of keeping it under the mattress. 

Michael Healy, CEO of IG Consumer, said: 

"Too many people think investing is something they'll get around to one day. But when it comes to building long-term wealth, putting it off can carry a significant financial cost. The Mattress Penalty highlights that cost in a way people can relate to, and so we are urging Irish households to examine investing their money for long-term financial security.

"Nobody is suggesting people shouldn't hold cash for emergencies or short-term goals, but relying solely on cash over decades means missing out on one of the most powerful forces in finance - compound growth. 

“Irish savers need to be empowered to invest in their own futures and financial security and we need clarity on the Government’s proposed Personal Investment Accounts, the tax-free element that will apply and the accounts’ structure. This will give savers the confidence to participate fully in the new scheme. 

“We continue to believe that Irish savers are underserved in their investing options and welcome the political momentum to remedy this."

The ‘Mattress Penalty’ - Saving €300 per month for 30 years

*Based on the average annual return of the MSCI World Index Exchange Traded Fund (ETF) over the last 40 years. Full methodology in Notes to Editors
**Deposits assumed to incur DIRT in the pre-tax and post-tax scenarios, as DIRT is deducted at source.

Economist David W Higgins said people are missing out on major earnings by leaving their money on deposit. 

"One of the biggest mistakes people make is underestimating the power of time. Investing relatively modest amounts consistently over a working lifetime can produce dramatically different outcomes compared with leaving the same money sitting in cash. While investment returns are never guaranteed and markets can rise as well as fall, the long-term historical evidence demonstrates the substantial opportunity cost of relying solely on cash when building wealth over decades."

To highlight the ‘mattress penalty’, IG brand ambassador Tommy Bowe and Mattress Mick wrote a giant “€175bn” using mattresses in the Dublin Mountains to encourage Irish people to invest their savings. 

Former Ireland rugby international and Ireland AM presenter Tommy Bowe said:

“Lots of us know we shouldn’t be letting our money just sit on deposit in the bank doing nothing but seeing the full extent of how much people are missing out by not investing is jaw-dropping. And with the Central Bank reporting that Irish people have €175bn just sitting there on deposit, it’s clear that too many of us are falling into this trap.

“You don't need to be wealthy to start investing and you don't have to be an expert either. If this campaign encourages more people to stop putting investing on snooze, to learn more and take that first step, it'll have been worthwhile."

-ENDS-

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Notes to editors

For any press enquiries, please contact:

IG PR: jack.crone@ig.com or press@ig.com

How the ‘Mattress Penalty’ was calculated

The economic analysis compares saving €300 per month over a 30-year period in a cash deposit account with investing the same amount each month in a diversified global equity portfolio. The difference is the ‘Mattress Penalty’ of €485,333. Investment returns are based on the average annual total return of the MSCI World Index ETF over the past 40 years, with monthly compounding.

Cash savings assume the average interest rate available on Irish deposit current accounts, with Deposit Interest Retention Tax (DIRT) applied. The returns on global equities assume investing under the Government's proposed Personal Investment Account, reflecting its stated intention to abolish deemed disposal and introduce an annual tax-free allowance for investment gains.

For comparison, the analysis also models investing under Ireland's current ETF tax regime, including deemed disposal and the payment of 38% taxes at the end of a 30 year period. Under these rules, the investor would still finish with approximately €411,651 - almost €300,000 more than the cash saver. The analysis was carried out independently by economist David W. Higgins and commissioned by IG.

About the €175bn mattress installation

The giant installation took place at Orlagh House, south Dublin, and involved the arrangement of almost 100 real mattresses, with no AI or other image manipulation used. The mattresses were supplied by Cirtex Ltd, a specialist waste recovery company, and were pre-used and collected once again after the event for recycling.

About IG Group

IG Group (LSEG: IGG) provides online trading platforms and educational resources to empower ambitious clients around the globe. Headquartered in the UK, IG Group is a FTSE 100 company that offers clients access to c.19,000 financial markets worldwide.

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