Tiphaine Dubuard / Photo credits: AFP 08:37, February 18, 2024
17.2 billion euros less on current accounts. In the fourth quarter of 2023, the French massively withdrew their money from their current account for the same reason: the increase in household spending linked to the increase in prices.
Expenditures are increasing and households need liquidity. The French massively withdrew money from their current accounts in the fourth quarter of 2023. In total, 17.2 billion euros were withdrawn from current accounts to allow the French to cope with the increase in the cost of life, linked to inflation.
568 billion euros are lying dormant in French current accounts
But there are also investments at attractive rates, such as the 3% of Livret A. Term accounts and other life insurance are attractive and allow us to anticipate for the future: "When there is inflation, French people are increasing their precautionary savings,” explains Philippe Crevel, director of the Cercle de l’épargne.
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“They want to secure money to meet future expenses that could cost even more.” The French savings rate was 17% in 2023, an increase of two points compared to before the health crisis. However, 568 billion euros are still sitting in current accounts, or 19,000 euros on average per household. In total, 10% of the financial assets of the French remain in their current account.