The financial assets of the French remain largely invested in life insurance, far ahead of regulated savings products such as Livret A, without forgetting the hundreds of millions of euros lying dormant in current accounts.
– A mountain of money –
The financial assets of households in France amounted to 6,267.6 billion euros at the end of March, according to the latest figures available from the Banque de France. It has never been higher.
They are distributed across multiple supports: life insurance, listed shares, collective investment undertakings (UCI), regulated savings accounts, demand deposits, etc.
Difficult to imagine, this sum is almost twice higher than the public debt, and almost three times higher than the entire market capitalization of CAC40 companies.
This amount has increased by more than 50% over the last ten years, according to the central bank which produces a report every quarter.
– Life insurance, the undisputed leader –
Life insurance remains the investment that captures the most savings in France, ahead of unlisted shares and other investments (associated with the activity of an individual entrepreneur or via investments).
According to data from the professional federation France Assureurs published on Tuesday, the outstanding amount amounted to 1,977 billion euros at the end of September.
Some 19 million people have life insurance, representing an average capital of more than 100,000 euros per subscriber, often invested in several contracts.
The sums are divided into two main categories: euro funds, whose capital is guaranteed and the return set each year by the insurer, and units of account (UC), riskier investments which do not offer any guarantee in capital for the insured but which can, in good years, bring in more.
Life insurance has regained strength this year, after a slump last year linked to competition from regulated savings.
The average rate used for euro funds is 2.65% this year, excluding tax and social security contributions, and should fall slightly next year, according to estimates from the specialist firm Facts & Figures.
– Regulated savings, reinvigorated outsider –
The Livret A, often presented as the preferred investment of the French because 56 million have one, weighs much less than life insurance.
With 428.7 billion euros at the end of September according to the latest tally from Caisse des Dépôts, its outstanding balance is almost five times lower than that of life insurance.
Its development is limited by the ceiling of 22,950 euros, reached by 12.7% of holders, according to the annual report of Regulated Savings of the Banque de France. The A booklets are filled on average at 7,077 euros at the end of 2023, or only a third of their capacity.
This product, guaranteed, tax-free and which allows you to recover your funds very easily, is looked at sideways by the banks since the remuneration they must pay – 3% since February 2023 – weighs on their margins.
There are other regulated savings products, such as the housing savings plan (PEL, designed to enable a real estate project), the Popular Savings Booklet (LEP, subject to resource conditions, remunerated at 4%) or the Sustainable and Inclusive Development Booklet (with characteristics similar to Booklet A).
– Demand deposits, hemorrhage stopped –
While there is a wide variety of financial products apart from life insurance and regulated savings, part of household money is not invested or invested.
The reserve lying dormant in these current accounts has seen a slow decline but remains higher than the money deposited in Livrets A: 557 billion euros at the end of August, according to the Banque de France.
This money, not or extremely poorly remunerated, has experienced a slow decline in the face of competition from another family of bank deposits: term accounts.
The latter saw their outstandings double in 18 months to reach 185 billion euros at the end of August.
The wad of bills under the mattress has finally not disappeared. The European Central Bank (ECB) estimates that the transactional use of euro notes only represents around 20% of their total, in value.
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