Finance in France is experiencing a major upheaval in 2024. Savers are changing their habits. In addition, life insurance is reaching historic highs and the Livret A is marking time after an exceptional year in 2023.
Finance: the big return of demand deposits
In 2024, an unexpected trend is emerging in the French financial landscape: demand deposits are experiencing a resurgence of interest. For the first time in almost two years, the French are increasing their investments in their current accounts. This turnaround, observed in the second quarter, surprises the experts at the Banque de France, especially since 85% of French people were worried about their future.
The figures speak for themselves: household sight deposits reached €554 billion in June, marking an increase compared to the stagnation between February and May, when the amounts hovered around €550 billion. In its quarterly report, the Banque de France highlights the end of a period of outflows that had lasted since the summer of 2022, when sight deposits reached a historic peak of €639 billion.
Life insurance in good shape
At the same time, life insurance is experiencing a real boom in 2024. Euro funds are once again attracting savers, with a 13% increase in contributions since the beginning of the year. This exceptional performance delights professionals in the sector. Paul Esmein, CEO of France Assureurs, notes that “net collection has not recorded such results since 2010”.
The Retirement Savings Plan (PER) also benefits from this craze for insurance finance. Contributions on this product jumped by 19% over a year, and 76,300 new policyholders subscribed to a PER in June. Especially since savers can now choose Bitcoin as a savings plan.
Finance: The Livret A is marking time!
However, not all savings products are equally successful. The Livret A and the LDDS, stars of 2023, are showing more modest performances in 2024. Net collection amounts to only 15 billion euros in the first half of 2024, more than half as much as in the same period the previous year. Despite this slowdown, the total outstanding amount of the two booklets reached 579.9 billion euros as of June 30. The Livret A remains an essential investment in French household finance, thanks to its capital guarantee and total liquidity which continue to appeal to cautious savers.
The world of finance is changing rapidly in France. In 2024, with unemployment falling, savers are diversifying their investments and returning to traditional products such as demand deposits. Life insurance is emerging as the big winner in this new financial situation.
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