More details have emerged about the Minister for Finance’s new savings and investment idea which aims to unlock some of the €170bn Irish people are estimated to have on deposit and encourage them to become stock market investors instead.

Simon Harris first floated the idea of a Government-endorsed savings plan in February but the details were sparse.

The idea is now clearer, though the fine print has yet to be thought through and is likely to be announced around budget time in the autumn.

The new Irish scheme will follow the popular Swedish one which sees people putting their savings into an ISK and paying a flat tax – currently about 1 per cent monthly – on their investment over a certain tax-free threshold.

Investment products currently available in Ireland have a complex tax system based on capital gains.

So is it a good idea? And will risk-averse Irish consumers who prefer to keep their cash at the ready be prepared to become investors?

Irish Times economics columnist Cliff Taylor explains – and gives his view on the idea’s likely success.

Presented by Bernice Harrison. Produced by Suzanne Brennan. 

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