How savers are unwittingly helping the banks to bigger profits

The failure of households that have savings to switch their money into higher earning deposit accounts is likely to lead to banks making higher profits than expected this year.

Just 4pc of the deposits in banks and credit union have been moved into higher-interest paying accounts. This has prompted stockbrokers Davy to project larger profits for AIB and Bank of Ireland.

Meanwhile, the Central Bank has increased the levy on banks and credit unions to cover the cost of the deposit guarantee scheme which protected deposits up to €100,000 per person.