The expected rush to take advantage of the Government-backed Special Savings Incentive Accounts (SSIAs) has failed to materialise. Potential customers appeared to be waiting to make a decision about whether to open an account until next year, according to the main financial institutions offering SSIAs.

A recent survey by Hibernian Insurance indicated that only about 230,000 people - 10 per cent of the population - had opened an SSIA, despite major marketing campaigns conducted by the major financial institutions.

To be fair, the survey was conducted in June - less than two months after the schemes were introduced. Nevertheless, the indications are that the take-up has been less than anticipated.

The Hibernian survey suggested that a large number of people appeared to be willing to wait and see before investing in the scheme.

Of the 90 per cent of respondents who said they were aware of SSIAs, 13 per cent said they would definitely open one, while 22 per cent said they would probably open one. Almost one-quarter said they would definitely not open an account.

Bank of Ireland reported that while there was still "heavy interest" in the scheme, the level of activity had levelled out as more people took the time to decide which institution to put their money into.

There was also evidence of growing interest in the equity-based SSIA products. A spokeswoman for Bank of Ireland said the ratio of interest in deposit- and equity-based SSIAs initially was 80/20 but this had shifted to 70/30. "There are more people out there who are prepared to take an element of risk," she said.

Mr Hugh O'Keeffe, manager of AIB's savings and investment centre, said the company was happy with the take-up so far but agreed the flow of applications had not been as high as anticipated. "There are certainly people who were quick off the mark and who will have said to others that if they don't start an account straight away they will lose out," he said.

Nevertheless, he suggested that some people wanted to wait until they were in a position to afford to put away the maximum amount per month of £200 (254) rather than just £10 or £50 a month. In addition, the 12-month timeframe during which applications can be submitted meant that a large proportion of total applications would probably come in the lead up to the deadline on April 30th, 2002.

Mr Ian Veitch, marketing and product development manager for Hibernian Life and Pensions, said that the take-up for the company's offerings was "good and steady" but it was experiencing a slowdown in applications as people spent more of their money on summer holidays. He added that the introduction of SSIAs was accompanied by so much information from the institutions that customers may be confused about what is available.

Mr Veitch also pointed out that, according to the company's survey, only 44 per cent were aware of the April 30th, 2002, deadline.

The EBS said that the initial response to its SSIA had been "considerably above expectations". However, Mr Michael Keane, head of sales and investments, said activity had fallen dramatically during July. He expected activity to pick up considerably in early 2002, as less favourable economic conditions, falls in property values and volatility in the equity markets drive people back towards deposit savings accounts.

By contrast, Ulster Bank reports that sales were quite slow at the outset but that July has seen a considerable pick up. A spokeswoman at the bank said the bank's fixed-rate SSIA had proved the most popular of its products.

National Irish Bank said the response to the introduction of its SSIA had been "favourable".