But Bank of Ireland did its best to rain on the parade, announcing a new special bonus account that pays six percent interest for regular savers. This is a direct salvo at Halifax in one of its key markets: people who decide to keep up the savings habit after their SSIAs mature.

Halifax was the first to offer a worthwhile rate of interest to these people, currently paying 6.2% on savings of 10 to 750 a month. It was quickly followed by AIB and Anglo Irish Bank, which also pay six percent or more for monthly savings.

Now Bank of Ireland has joined the fray and, while others might offer a fractionally higher rate of interest, its special bonus account will appeal to savers who value flexibility. They can choose to save weekly, fortnightly or monthly. They can dip into their savings whenever they want or even stop saving altogether when money is tight.

And there is no need to open a separate feeder account at Bank of Ireland to avail of its six per cent rate of interest.

Whatever the subtle differences between the rival accounts, the bottom line is that regular saving has seldom been more rewarding.

And the outlook is rosy with an interest-rate hike, expected from the European Central Bank on Thursday, likely to add another quarter percent to returns.

The banks know they have to keep things sweet because regular saving is set to remain a huge potential market into the future. According to Bank of Ireland, about 60% of SSIA holders will keep up the habit after their accounts mature. And they are saving more than they used to, putting away 270 a month on average compared with the maximum SSIA contribution of 254 a month.

These people also have time on their sides, with Bank of Ireland reporting that 58% plan to keep saving indefinitely. Is the six percent offered by Bank of Ireland, Halifax and the other financial institutions the best they can hope for or could they do better by locking away their money in a longterm savings plan?

On the surface, the answer looks like no. According to the best brains in the investment business, it is reasonable to expect average returns of about six percent a year before taxes and charges by putting your money into a managed fund or similar investment linked to stock-market performance. Why take the risk when you can earn the same return, with a slightly lower rate of tax and no charges, from a rock-solid bank deposit?

Dig a bit deeper, however, and a different picture emerges. History has shown time and again that the stock market is the best home for your money, no matter how much interest the banks pay on deposit. SSIA holders have learned this lesson first hand, with the minority who invested their savings in stocks and shares doing much better than the majority who left their money on deposit.

For example, an SSIA that matured in October after saving 254 a month for five years would have been worth 21,300 if the money had been on deposit earning 4.25% interest. If the same SSIA had been invested by the fund managers at Eagle Star, it could have been worth 25,200- 27,600 depending on the riskiness of the fund.

"Equities have always outperformed over the long term, " says John Geraghty of LA Brokers, which sells discounted savings plans online.

"People who invested in equity SSIAs are very happy with the returns. They've experienced what it's like to invest in the stock market. . . These people won't find a six-percent deposit attractive.

They've caught the excitement of the stock market and won't be turned on by a dull deposit."

Brendan Johnston, marketing director at Eagle Star, says the high-yield deposits are not all they appear to be because they are only open to people who build up their savings bit by bit rather than those who have already accumulated a lump sum. And the top rates of interest are only paid for a limited time, ranging from two years at Anglo Irish Bank to the end of next year at AIB.

"With these headlinecatching rates of interest you have to ask yourself how long they're going to last, " he says.

"They're all short-term, designed to get people in and then hope they won't look too hard at what rate of interest they're getting after that. If you want real growth, rather than gimmicks, you've got to go for investment over deposits."

SAVING FOR A WEDDING DAY

Some six percent of SSIA savers use the money to pay for their weddings, according to new figures from Bank of Ireland. Dubliners Laura Haugh, 28, and husband Ross, 33, are among them.

The were married on 4 August, a date chosen to coincide with the maturity of their SSIAs. Thanks to the government-backed savings scheme, the couple were able to splash out 23,000 on their big day, followed by a honeymoon in the Caribbean, without getting into debt.

"Both of our SSIAs matured at the end of July so we were able to access the cash to clear our bills straight away, " says Laura. "It meant we could come back from honeymoon to a new life with no debt."

Nevertheless, balancing the couple's finances in the lead up to the wedding proved to be tricky because many bills had to be paid up front, long before the SSIAs matured.

To bridge the gap, Laura relied on plastic, making sure to avail of the interest-free deals that credit card companies give to new customers for up to nine months.

This allowed her pay for her wedding dress, which she picked up in Waterford for half the cost, as well as other expenses such as booking deposits without incurring a penny in interest. As soon as their SSIAs paid out, Laura and Ross cleared their credit card debts in full.

Laura's SSIAs did slightly better than Ross's because she invested the money in a stock market fund while he played it safe with a fixed-rate deposit account.