Closed nightclubs, reduced access to culture, a gloomy atmosphere that does not encourage going to a restaurant… The French have limited their spending for two years, and in a period of economic uncertainty, many have preferred to save.

This is how after more than 35 billion collected in 2020, the Livret A still saw 15.17 billion deposited in 2021, plus 4.04 billion garnered by the Livret de développement durable et solidaire (LDDS).

A level that remains historically high despite the huge difference between the two years.

This trend is mainly explained by the strong savings made at the beginning of the year, in the middle of the second and third waves and when vaccination was only in its infancy.

But since this summer, we have seen a gradual return to normal, with even at the end of the year a trend towards outflows, ie withdrawals exceeding deposits.

December is a good example in this respect, with a surplus of withdrawals of 1.7 billion euros for the Livret A, while the LDDS garnered 630 million euros, and this while the last month of the year is traditionally a collection month.

Pleasure and rising prices

Indeed, Christmas expenses are often spread over the previous months and the French tend to replenish their savings in December, especially for those receiving a 13th month or end-of-year bonuses. For Philippe Crevel, director of the Cercle de l'épargne, this result for December can be explained by two factors: on the one hand "the French had fun" for the end-of-year celebrations, after almost two marked years by the pandemic, and on the other hand the rise in prices, in particular of energy, has limited savings capacities.

In this regard, inflation led the government to announce last week an increase in the rate of remuneration of the Livret A, a first in ten years.

It will thus increase from 0.5 to 1% on February 1, a substantial increase, but which will not fully offset inflation.

In total, Livret A and LDDS accumulated at the end of December 469.8 billion euros saved, an increase of 4.8% over one year.

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