The proposed introduction of tax-incentivised savings and investment accounts (SIAs) has the potential to engender a culture of retail investment in this country. However, the design of the new scheme will be critically important, as will the way in which it is communicated to the public.Creating that investment culture is a top priority for Ibec industry body Financial Services Ireland (FSI) this year.According to FSI director Patricia Callan, the SIA initiative has its genesis in the EU Savings and Investment Union. “It’s a European Commission initiative about unlocking money that’s sitting in deposit accounts around Europe. There’s €23 trillion in deposits across Europe and €170 billion here in Ireland. That money is not working for individuals or for Europe as a competitive economy.”The Central Bank of Ireland retail investor participation in Ireland consumer research and analysis report published in December 2025 revealed that Irish households hold just 2.3 per cent of their financial assets in direct investments such as listed equity and debt securities, compared to the EU average of 7.5 per cent.“Ireland has developed a reputation as a nation of savers,” says Callan. “That is a positive, but it is important that we also cultivate a new investment culture where people can build wealth through investing in capital markets.”Relatively poor financial literacy is part of the issue. “There is this idea that cash is somehow safe or that deposits up to €100,000 in a pillar bank are safe,” she notes. “But with inflation outpacing deposit interest over time, the purchasing power of people’s money on deposit is diminishing. We know over the long term that investing makes much more sense and gets a better return. But there has been very low uptake among Irish people in investing.”Financial literacy initiatives have tended to focus on basic money management and budgeting, she notes. “Obviously, that is essential. But more needs to be done on investing.”The gap in understanding was strongly in evidence in a survey carried out on behalf of FSI by Amárach Research earlier this year. Thirty per cent of adults surveyed said they had money to invest but didn’t know what to do with it. That lack of knowledge needs to be addressed for the SIA scheme to be successful, according to Callan.“The survey data also showed there is an appetite for retail investment accounts, but there is work to be done to bridge the information gap out there,” she says. “We need to ensure that we are improving financial literacy amongst the public so they understand the potential risks and rewards of investing and what it can offer them.”That is a job for the industry and Government to undertake together, she believes. The design of the product is, of course, a matter for Government, but simplicity needs to be at its heart, Callan adds.Financial Services Ireland director Patricia Callan: 'People are very nervous in Ireland when it comes to savings and investments.' “It has to be simple, it has to be accessible, and there should be no tax on it,” she says. “Those things are important because we don’t want to deter people. We believe there should be no minimum or maximum amount that you can save and there shouldn’t be time limits on how long you should keep your money in the account. Even though the advice people would be given is that the longer you leave it in, the better, people are very nervous in Ireland when it comes to savings and investments. Even if you look at the deposit accounts, they tend to be immediate access. It’s not even 24 hours or a week. A lot of people feel they need access to their money right now.”The tax issue is interesting. In one model, the savings grow completely tax-free, and there is no tax paid on exit. In another, the one seemingly favoured by the Government, there is a relatively small annual charge on savings.Should the latter be chosen, Callan emphasises the need to keep this as simple as possible. “This should be looked after by the providers and there should be no need for individuals to report it on tax returns.” PAYE workers tend not to file tax returns and the necessity to do so might deter them from investing in an SIA, she explains.Confirmation of the details is needed sooner rather than later. “We’d like to get the detail now so that the industry can start developing products in advance of the launch next year,” she says.“We’re looking at this from the perspective of what’s best for the individual,” Callan continues. “They can use the savings in five years for a house deposit and use the tax-free growth to get to what they need faster, if they want. Or take it out earlier for another need or stay invested for longer-term growth. But over time, we’re hoping the accounts will kick-start a conversation and an interest in investing and that more people will become active investors.”