Collection reached 4.49 billion euros, unheard of since 2009 for the month of August. The preferred investment of the French has gained in attractiveness with a rate now at 2%.
The effect was not long in being felt. As soon as the rise in the livret A to 2% took effect on August 1, the French accelerated their payments on what remains by far their preferred investment. In August, net inflows (deposits minus withdrawals) reached 4.49 billion euros. This is the strongest harvest since 2009, when the distribution of the booklet A was generalized to all bank counters. Its little brother, the sustainable and solidarity development booklet (LDDS), which offers the same level of remuneration, has collected nearly 780 million euros. Again a high level.
“As always, the interest rate effect comes into play. We often see it a month before the actual increase, and the two to three months following this boost., notes Philippe Crevel, director of the Circle of savings. The announcement of this increase in July had already resulted in an unprecedented level of payment that month – 2.64 billion euros on the Livret A account alone – since 2009.
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Anxiety conducive to savings
The current context of uncertainty also sharpens the ant behavior of the French. Over the first eight months of the year, the collection of the Livret A and LDDS savings accounts totaled +27.46 billion euros. Total outstandings on the two products reached €497.1 billion at the end of August 2022.
The livret A remains a guaranteed and above all liquid investment, at a time when the portfolio of the French is hard hit by inflation. “We talk about shortages, the fear of running out of electricity, obviously this creates anxiety conducive to precautionary savings. The Livret A is the first beneficiary.continues Philippe Crevel.
With its rate rising sharply, the Livret A will become attractive again
With this level of remuneration, the preferred investment of the French regains attractiveness, compared to other savings products, in particular those whose capital is guaranteed. The gap is now marked with the fund in euros of life insurance, closer to 1% on average. And classic bank books remain unattractive. Moreover, the upheavals in the stock markets are no doubt encouraging savers, who had ventured on the stock market in recent months, to be more cautious. However, the Livret A rate remains well below inflation (5.9% in August over one year).
Likely rate hike in 2023
Nevertheless, the rise is probably only in its infancy. The Livret A rate is reassessed each year on February 1 and August 1, based on a calculation linked to inflation and market rates. But the surge in price fever is not over. “There will undoubtedly be a further increase in the rate (of the Livret AEd) next February »said the governor of the Banque de France, François Villeroy de Galhau, last week on RTL.
This increase could again be very marked. ” If we rely on inflation forecasts, we could have a remuneration of around 3.30%”, says Cyril Blesson, economist at Pair Conseil. Such a level of remuneration would still give the livret A additional attractiveness, compared to other investments. Something to further whet the appetite of savers for this product.
SEE ALSO – The Governor of the Banque de France announces a new rise in the Livret A rate on 1 August.