Baptiste Morin / Photo credit: DENIS CHARLET / AFP
The favorite investment of the French, the Livret A, continues its seduction operation. For more than a year, its rate has been increasing steadily, thus contributing to its renewed attractiveness. Worse, the Livret A now competes with life insurance, another investment appreciated by savers.
It is the preferred investment of the French… And it should still gain in popularity! The Livret A rate could once again be revalued. The decision is expected to be announced the week of August 1. The placement rate has gone from 0.5% in January 2022 to 3% today. A sacred increase which pushed the French to save massively.
As a result, over a little over a year, the total sums paid out of the 55 million booklets rose by 15%. Some 50 billion euros collected in just 16 months. “It must be said that there was a lot of cash in the current accounts”, explains to the microphone of Europe 1 Philippe Crevel, economist and president of the Cercle de l’Epargne.
Competition between Livret A and life insurance
“There were up to 543 billion euros on current accounts in France in September of last year and we went down to 505 billion euros at the end of April. So we can clearly see that there is a transfer of unpaid money to the better paid booklet A”, he continues.
There are funds transferred from current accounts, but also over the months, competition has developed between the Livret A and life insurance. Because with a rate of 3%, the Livret A is more attractive than the funds in euros of life insurance on average at 2%. Since the beginning of the year, these funds have recorded withdrawals of more than 12 billion euros.
2023-07-10 09:43:04
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