Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I wish to make one further point. Does the Minister have any thoughts on the fact that the scale of the difference will encourage savers to put their money in a certain direction, that is, into products that are subject to the DIRT rate as opposed to the exit tax rate? Very often the products subject to the exit rate of tax offer higher returns. They are generally longer-term products. As we know, deposit rates in retail banks are close to zero at the moment. I know it is because of money that the Minister cannot align them, but it has a consequence in that it gives people a financial incentive to put their money into one form of savings product rather than another.