The French continued to fill in their Livret A in 2021, but less than in 2020

In total, it is therefore 19,2 billion euros that the two booklets have garnered in 2021, against more than 35 billion in 2020, a level which however remains historically high.

By way of comparison, the excess deposits had reached 16,55 billion in 2019 before the outbreak of Covid-19.

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.

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 have 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.

According to Mr. Crevel, however, it is still too early to know to what extent these two factors may have played a role.

Omicron effect?

At the start of the pandemic, these two booklets, which nevertheless guarantee a historically low interest rate of 0,5% per year, were amazingly successful, contrasting with the lack of love observed on life insurance contracts.

The yield on savings accounts is all the lower as inflation rose sharply in 2021, reaching an average of 1,6% over the year as a whole, and a peak of 2,8% over one year in November. and December.

This price increase also prompted the Banque de France and the government to announce last week an increase in the Livret A and LDDS rates from 0,5% to 1% from 1 February. A first for ten years.

What to give back the desire to the French to save? The question should arise, especially since the pandemic has not said its last word with the wave of the Omicron variant at the end of 2021 and the beginning of 2022.

If the health consequences remain measured, in particular compared to the number of contaminations, “we see much fewer outings in restaurants”, points out for example Mr. Crevel.

Cumulatively, the Livret A and the LDDS accounted for total outstandings of 469,8 billion euros at the end of December, an increase of 4,8% over one year.

Managed jointly by the Caisse des dépôts and the banking networks, the Livret A is mainly used to finance social housing, while the LDDS is dedicated to the social and solidarity economy as well as to energy savings in housing.