French savings continue to grow, after breaking records in 2020 due to the health crisis and containment measures. Livret A passbook savings totaled 6.32 billion euros in January 2021, up 58% on January 2020.
The return of savings after holiday spending
After an exceptional year in 2020 from every point of view, during which the French saved so much that a savings surplus of 130 billion euros was recorded, the month of December saw the situation reversed.
To celebrate the festive season, the French withdrew a total of 840 million euros from their Livret A passbook savings accounts. But this spending was only occasional, and January 2021 confirms the savings trend of the previous year.
Livret A savings accounts collected 6.32 billion euros in January. The month of January is traditionally a good time to save after year-end spending, but the French were particularly cautious this year. In January 2020, Livret A deposits totaled just 4.13 billion euros, a 58% drop.
Saving for an uncertain future
The amount collected is almost as high as in April 2020, when the French deposited 7.39 billion euros in their Livret A passbook accounts. In January, total deposits, including Livret A and Livret de développement durable et solidaire (LDDS), came to 7.19 billion euros.
This tendency to save, which last spring was linked to containment measures and business closures, is now explained more by fear of the future and economic uncertainties.
Despite government incentives to encourage the French to make financial investments, liquid savings are widely favored. While liquid savings can act as a brake on economic recovery, they have the advantage of offering great flexibility and higher yields than ordinary bank passbooks, despite low interest rates.
Against the backdrop of a health crisis with no end in sight, and the threat of a major economic crisis, the French are opting above all for security, and don't seem ready to take risks with their money.