Savings: the Livret A and life insurance in the upper part of the year
In the first four months of the year, the Livret A has already raised almost 10 billion euros when life insurance has recorded a net inflow of just over 11 billion. These two products had raised 8 billion in 2018 at the same time.
Interest rates may be at a minimum, however, French savers have filled their A-brochures and their life insurance accounts massively from the beginning of the year, a sign of concern that shakes families, analysts said.
"Since the end of 2018, the French have significantly increased their savings efforts. Livret A and life insurance are the main beneficiaries"Philippe Crevel, director of the Savings Circle, a study on savings and its regulation, quoted by AFP.
Already 11 billion euros collected on life insurance
In the first four months of the year, the Livret A has already raised almost 10 billion euros, compared to just over 8 billion last year, when life insurance recorded a net inflow of a po & # 39; over 11 billion against 8 billion in 2018.
Now, just over 400 billion are placed on Livret A and her little brother, the booklet for sustainable development and solidarity (LLDS) and 1 745 billion on life insurance. This dynamic may seem paradoxical at first sight: the average yield of these two savings products is really far from its peak.
The Livret A pay rate has never been so low. It remained blocked for almost three years at 0.75% and, unless surprised, should not move at least until 2020. The performance of life insurance contracts has steadily deteriorated in recent years, as a result of the more general context of interest rates very low interest, which makes it difficult for customers to earn money.
Purchase in progress
These two placements are advantageous "At the same time as the increase in purchasing power at the beginning of the year and the refusal of families to commit themselves to important expenses"says Philippe Crevel.
In the wake of the "Yellow Vests" movement, families actually benefited from the start of the year by several inches: exceptional bonuses, exemption of overtime, advances on tax reductions, freezing of bank rates and reduction in costs of accidents for the most vulnerable. Inflation has also slowed in recent months compared to 2018.
but "The French do not integrate the continuous improvement of the labor market and the increase in income into their behavior. The fear of an economic recession and an increase in taxes or inflation makes them cautious", continues Philippe Crevel who evokes a " economic and social context considered as anxiety.
Fund guarantees and tax benefits
For Alain Tourdjman, director of studies and perspectives of the BPCE group, "We are moving towards a higher level of investment and savings in 2019 than it was in 2018". Low rates could even paradoxically encourage French savers to increase their savings level. "What was not achieved by the price, we try to achieve from the volume", anticipates M. Tourdjman.
"This type of product has always attracted the French, who appreciate the recipe that combines the guarantee of the funds and the tax benefits applied to these investments"Mayeul de Roquemaurel, market director at the SPVIE Assurances broker, explains to AFP.
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