Who would have thought, a few months ago, that the term account would once again attract a large number of savers? The market is obviously not limited to the online bank Boursorama but the latter published on March 23 figures testifying to an unexpected success for a family of snobbish investments for years.
From 0.38% to 2%, in just 1 year. This skyrocketing rate is the average established by the Banque de France for term deposits of 2 years or less. A niche investment, and above all a snob for lack of attractive rates for many months, even years.
But this average has risen very rapidly in recent months, partly following the rise of the Livret A, which now pays 3% net of all taxes. The average term account (CAT) should therefore continue to rise.
In particular driven by the brand new Boursorama term account, remunerated at 3% (gross, before flat tax of 30%, or 2.10% after tax) provided that a minimum of 30,000 euros is blocked for 12 months. The online bank launched a product in early March.
Term account: operation and comparison
Complementary products of Livret A
In 3 months, this term account and the Livret Bourso+ have attracted more than one billion euros. In fact, the strong collection announced by Boursorama on these savings products is partly to put the assets of the term account but especially of the Livret Bourso+: this is accessible from 100 euros of payment. The money is available at any time as on any passbook, and it is paid 2% gross before flat tax (ie 1.40% net), with a ceiling of 30,000 euros in deposits. The CAT was therefore clearly designed to complement this booklet.
And these two savings products whose interest is subject to income tax are themselves complementary to the Livret A and regulated savings, which are not taxed. Boursorama rightly mentions in its press release a more buoyant interest rate environment and a 100% online product search, simple, without risk, free of charge, with the most risky investments posting performance at half mast in 2022, while the rates for non-risky investments (starting with passbooks) are rising. Like a reversal of the balance of power of recent years.
This dynamic on precautionary savings is also driven by the evolution of regulated savings outstandings (Livret A, LDDS, PEL, CEL), specifies Boursorama, with net inflows of nearly 900 million euros since the beginning of January 2023.
Passbook and term account: from 230 to 350 billion euros
According to Banque de France statistics, sums accumulated in traditional bank books – i.e. savings accounts not included in regulated savings (Livret A, LEP, LDDS, etc.) – and accounts French households had fallen below the 230 billion euro mark in mid-2016, when interest rates were at their lowest. At the end of 2022, classic passbooks and term accounts exceeded 350 billion euros.