2023-08-16 08:00:00
The Livret A and LDD booklets offer many advantages to French savers. With a net rate of 3% since February 1, they are much more attractive than the interest rates on demand deposits offered by banks, which are 0.04% on average for individuals. These regulated savings products also combine security and liquidity. In the first quarter, these booklets attracted 25.4 billion euros, and another 9 billion more since, according to data from the Caisse des dépôts. At the same time, the amounts in cash and on current accounts fell by 18.5 billion euros between January and March.
The advantages of Livret A and LDD savings accounts are still attractive
The persistent attraction for Livret A and LDD savings accounts also had an impact on other financial products, such as life insurance funds in euros, which experienced negative net inflows and deflated by 15.5 billion euros. in the first semester. In parallel, INSEE reports inflation of 4.3% year on year in July 2023, mainly due to a decrease in energy prices and respective increases of 3.4% and 12.7% for manufactured goods and food. Despite this inflation, which is higher than the rates of return on passbooks, French savers continue to favor these savings options.
Inflation higher than pay rates
Banks and insurers may need to reconsider their offerings to compete with these regulated savings products, which continue to attract a large share of savers despite the current economic climate. The trend towards safe and regulated savings in France seems well entrenched, reflecting a national preference for financial prudence in an uncertain environment. The continued popularity of Livrets A and LDD with French households testifies to their appeal as flexible and secure savings options. Although current inflation is higher than these passbook pay rates, their security and liquidity outweigh these considerations.
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