In November, this savings product recorded an amount of investments exceeding two billion euros. These figures are starting to contrast with those of Livret A, which is however still considered the most popular savings product in France.
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At the start of the pandemic, and until recently, life insurance was abandoned in favor of the Livret A. But the trend is reversing. Those who have been able to save some money in recent months have changed their savings habits. Concretely in November, deposits (contributions) reached 12.4 billion euros, and withdrawals (money taken back by savers) 10.1 billion euros. Deposits therefore exceeded withdrawals by 2.3 billion euros, unprecedented in two consecutive months (October and November).
This success is explained in particular by the low remuneration of the Livret A. Now remunerated at 0.5%, the popular passbook attracts less, so savings are shifting. And then inflation increases. The context of rising prices pushes the richest savers to turn to more profitable savings, which is the case with life insurance according to the supports offered by insurers and large commercial banks.
The rate of remuneration of the tax-exempt booklet is less attractive compared to life insurance which, for its part, is more diversified. Depending on the products offered, life insurance investments are more profitable because they are more risky. While some find a taste for risk, the most modest remain on the Livret A.
The difference is notable: 18 million French people now have a life insurance contract compared to 55 million a Livret A. Livret which allows, in many cases, to pay certain taxes, or to ensure difficult ends of the month.
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