While Livret A inflows in April 2021 remained below those of April 2020, they exceeded those of 2019, reaching 2.95 billion euros, making it the third-highest April inflow since 2009.
High savings despite low returns
By April 2020, during the first lock-in, the French had saved considerable sums. 7.4 billion euros had been deposited in Livrets A and Livrets de développement durable et solidaire (LDDS), including 5.47 billion euros in Livrets A alone.
In April 2021, Livret A inflows did not reach such high levels. However, at 2.95 billion euros, it is higher than the April 2019 figure of 2.71 billion euros. Along with 2013 and 2020, this is the third-highest April collection since 2009.
The Livret A savings account continues to appeal to the French, despite a low yield of 0.50%. Its advantage is that it offers great flexibility, as savings are as easy to deposit as they are to withdraw when needed.
A cash reserve larger than the stimulus plan
In 2020, as a result of the Covid-19 health crisis, French households accumulated surplus savings of 110 billion euros.
This amount continues to rise, even if the French are now saving at a slower pace. Economists estimate that there will be a savings surplus of 55 billion euros by 2021, bringing the total to almost 160 billion euros.
This sum, greater than the 100 billion euro stimulus plan, should represent between 6 and 7% of GDP, as estimated by François Villeroy de Galhau, Governor of the Banque de France. The mobilization of these savings is therefore a major challenge for the recovery.
Between January and April 2021, net inflows to the Livret A and LDDS amounted to €18.4 billion, for total outstandings of €470 billion.