The 2021 yield announcement season was shaping up to be gloomy. It was not particularly fruitful for savers, but it is less catastrophic than expected. In the first place, the banks’ life insurance funds in euros had fallen so low that they managed to limit the damage.
It is still too early to know precisely the average return on life insurance funds in euros for the year 2021. It was 1.28% according to the banking and insurance regulator, the ACPR, for the year 2020 and it should approach 1% according to most observers.
Finally, government bond rates are rising, the yield on Livret A is back 1%… and insurers have apparently not taken on a new sharp drop in their yield. The evolutions are extremely variable, with surprise bouncesa large number of stable rates, and some slightly lower salaries.
How are the general public contracts distributed by the big banks faring? These contracts, which charge an installment fee each time you deposit money, are used to being among the bottom of the class. With the lowest yields in the entire life insurance market. The year 2021 is no exception.
Life insurance: 2021 rates for large euro funds, from best to worst
Crdit Agricole and Banque Postale (and their respective insurers Predica and CNP) assume a low return on their consumer contracts, with a rate of 0.65%. Mrs. notes the Caisse d’Epargne which lowers the yield of its flagship contract Millevie Essentielle 2 0.75%.
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However, there are many rising rates in the major banking networks! This is mainly due to yields that had fallen low in 2020. And that it was difficult to continue to plunge. The base rates paid on BNP Paribas, LCL, CIC or Crdit Mutuel Alliance federal contracts remain above the 1% mark. Double symbolic bar this year, by the round number but also because 1% is the new rate of the Livret A. Note however that a return of 1.10% on a fund in euros is subject to social security contributions (17 .2%): after this social levy, the return net of tax (1) spring 0.91%. Less than a Livret A!
Life insurance rates: should we expect a Livret A effect?
Several banks also play on the bonus linked to investment in units of account (UA), supported without a capital guarantee, unlike funds in euros. On Predissime 9 series 2, for example, Crédit Agricole now includes a bonus depending on the unit share: the poor yield of 0.65% can rise to 1.45% if the client holds more than 50% CPU. Same observation at Crdit du Nord, or even reboosted bonus in 2021 at LCL. Here are the yields for the main consumer contract in each major banking network.
| Banks | Flagship contract | Rates 2020 | Max bonus 2020 | Rates 2021 | Max bonus 2021 |
|---|---|---|---|---|---|
| People’s Bank | Horizon 2 | 0.80% | 1.15% | 0.75% | 1.10% |
| BNP Paribas | BNP Paribas Multiinvestments | 1% | 1.20% | 1.10% | 1.65% |
| Savings Bank | Millevie Essential 2 | 0.80% | – | 0.75% | – |
| CIC | Essential Life Insurance Plan | 1% | 1.50% | 1.10% | 1.60% |
| Credit Agricole | Predissime 9 series 2 | 0.65% | – | 0.65% | 1.45% |
| Credit du Nord | Antarius Selection | 1% | – | 0.90% | 1.35% |
| Mutual Credit | Essential Life Insurance Plan | 1% | 1.50% | 1.10% | 1.60% |
| Credit Mutuel Arka | Navig’Options | 0.50% | 1.20% | 0.85% | 1.20% |
| The postal bank | Vivaccio | 0.70% | – | 0.65% | – |
| LCL | LCL Life | 1.05% | 1.85% | 1.05% | 1.85% |
| Societe Generale | Essential Maple and Squoia | 0.75% | 1.20% | 0.75% | 1.84% |
Details of 2021 rates at major banks
Life insurance: why your bank’s contract is not very interesting