The passbook A rate increased for the second time of the year on August 1, from 1% to 2%… While many euro funds are currently offering half the remuneration, insurance life still an attractive investment? And in a context of strong inflation, the question arises as to how other savings products will evolve. In this context, do regulated savings accounts represent the alpha and omega of investments?
“For the French, the increase in the rate of the livret A is good news for precautionary savings, all the more so with the continuous increase in inflation, considers” Marie-Stéphanie Hess, director of development at the Sicavonline investment platform. However, to enhance your capital over the long term, there are other investment solutions depending in particular on your personal and asset situation as well as your objectives, such as SCPIs, life insurance or even PEAs, which are more risky but , potentially more efficient. “
How can life insurance remain attractive in the face of this increase?
In general, it is very likely that on the market, few life insurance contracts should offer a euro fund rate higher than 2% this year. However, the livret A remains capped at EUR 22,950 for individuals and EUR 76,500 for associations, excluding the calculation of capitalized interest.
In addition, 2% remains a low rate in comparison with the potential yields of units of account (UC) and their diversity (OPCVM, ETF, SCPI, SCI, live securities, etc.) offered on life insurance contracts . Unit-linked bonds still present a risk of capital loss. In fact, the insurer only commits to the number of units of account, and not to their value, which can fluctuate up or down depending on the evolution of the financial markets.
Livret A, a relevant investment for precautionary savings
Under these conditions, the Livret A account remains the most appropriate solution in the short term and for precautionary savings. In the long term, life insurance is much more interesting for diversifying its investments and its potential return, especially for investors who have higher savings. This investment also allows you to diversify your savings, and thus smooth out the risks, bearing in mind that the financial products are linked to the evolution of the financial market and involve a risk of capital loss.
Keeping your investment goals in mind
On the other hand, it is necessary to take into account its objectives to choose its investment envelope. The Retirement Savings Plan (PER) is, for example, an interesting option if you wish to benefit from a tax reduction and deduct your payments from your income tax and prepare for your retirement. However, it does not offer the same availability of savings as life insurance. Do not forget: the imposition that will be applied to the output.
Mastering the issue of potential return
Finally, before investing, you have to ask yourself the right question: what is the potential return? This is not necessarily obvious (lack of time, not enough knowledge). Thus, according to the latest Ifop barometer for Sicavonline, nearly a third of French people do not know how much their savings bring in*. This is why the principle of delegated management, piloted or under mandate to seek potential higher yields is undoubtedly a key. The investor then entrusts the financial management of his contract to a team of professionals.
* Survey “The French and post-covid savings”, carried out from January 5 to 10, 2022 with a sample of 2,001 people, representative of the French population aged 18 and over and compiled according to the quota method. Interviews conducted online.
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