1.8 billion euros. Here is the sum capitalized by the Livret A in April 2022, according to figures from the Caisse des dépôts et consignations relayed by Le Figaro. Last year, at the same time and when France was confined on the sidelines of the Covid-19 pandemic, this figure amounted to 3 billion euros. However, this is a similar amount to that which was saved in April 2019, before the health crisis began.
According to information from 20 minutes, the rise in prices has important consequences such as the drop in purchasing power and household consumption, but also savings conditions that are far from advantageous. With inflation, estimated at 4.8%, it may seem futile to invest your money in a savings account paid at 1%. Does it make sense to keep saving? Is it better to invest?
In the columns of the daily, economics professor François Geerolf indicates that “most interest rates are currently negative”, because the yield of the various savings products – including the livret A – have a yield of less than 5%. . Even putting your money in a bankbook at 1%, you are losing money since inflation is 4.8 points. “Periods of inflation are always negative for savings,” adds the investment specialist.
According to INSEE figures, again reported by 20 minutes, French people save more than 20% of their gross disposable income. Note that some savers do not fill out their A savings account to generate profit… But how to explain these massive savings?
You will have understood it: putting money on your booklet A is not profitable in times of inflation. On the other hand, this allows you to grow your income to a minimum, rather than letting it sleep in your current account. Also in the 20 Minute columns, another expert, Philippe Crevel, explains that some are tempted to hold their money aside in the hope that prices will fall again. “If wages rise to compensate for inflation, they will not come down and prices will also remain high,” commented François Geerolf.
On the contrary: the scenario favored by the financial markets is that of a continued rise in inflation. Thus, you will be better off dividing your savings between saving and investing…
In times of inflation, it is counterproductive not to invest: you lose purchasing power. So prefer investment to savings, even if you only invest a few euros per month, and favor safe investments. “Concretely, corporate actions – and in particular the CAC40 – are in bad shape and falling, they do not necessarily represent wise investments”, continues François Geerolf in the columns of 20 minutes. Pay attention, therefore, to stocks, material values such as gold or even real estate.