Warning issued to Irish people who have €5,000 in their bank account

Experts have spoken out

They say a "silent killer" may be eating away at savings, without you even realising.

The "pathetic" interest rates on bank accounts means you may be missing out, and that it should be given a lot more attention by savers.

Dan Malone from honest.ie explained to the Irish Mirror: "Our attitude towards where we keep our savings needs to change. We have no problem driving an extra five minutes to shop in a cheaper supermarket to save a few euro, but we are indifferent about whether our savings are in the right account."

Malone went on to explain how interest rates on bank accounts mean that your cash is being ate away at due to inflation.

"Too many people have cash sitting in accounts that have pathetic interest rates, and inflation will eat away at these savings in the long run.

"Let's say that for the next ten years, you leave €5,000 sitting in an Irish account earning zero interest. After ten years, you'll still see €5,000 in your account after ten years, so it looks like you have the same amount of money.

"But with inflation, your €5,000 might only be able to buy around €4,000 worth of goods in today's money. So in reality, you're really losing around €100 per year by keeping your cash in the wrong bank account, but most people don't realise that because inflation is invisible - it doesn't show up as a falling bank balance."

He went on to say there are thankfully options for people who want to act, and it is very easy to compare accounts via price comparison sites such as honest.ie.

"Gone are the days when we had only a handful of banks to choose from," he said.

"Now there are dozens of banks available to people, and the best options are currently outside of Ireland. Many EU banks now offer much better rates, and your savings would be just as safe because of EU deposit guarantees."

Malone added: "People are astonished when they compare bank accounts side by side and discover that there are much better options out there for their savings."