Savings back in favor? The holders of A booklet – or other comparable regulated products such as Sustainable and solidarity development booklet (LDDS) or the People’s Savings Booklet (LEP) – recently had reason to rub their hands: the rates of return on these investments will be soon to be upgradedas already explained Planet. As of August 1, 2022, the Ministry of the Economy has thus informed, the rate of remuneration of the Livret will be raised to 2%, in accordance with the proposal of the Governor of the Banque de France. That of LEP rises to 4.6%. In either case, it is not enough to offset inflation, which INSEE measures at 5.8% in France in June, recalls Progress.
If this is obviously not enough to put savings back in the foreground, there may be something to make life insurance holders jealous. Is right ? Maybe not, recalls the online bank Boursorama on its information site. If the State is not responsible – or, at least, not directly – for the economic situation, it could still lead to higher rates for certain life insurance contracts. And this time, it may be the European Central Bank (ECB), which potentially has to be thanked…
Life insurance and the European Central Bank: what’s going on?
For the first time since 2011, the ECB raised key rates by 0.50%. It is, in this case, aan attempt to regain control of inflation observed throughout the euro zone. In June 2022, the latter was estimated to have increased by 8.6% over one year.
Such a measure, it goes without saying, has multiple impacts. It can be brutal for some heavily indebted, which the organization says it paid attention to. But it can also delight some French savers…
Life insurance: should we be happy?
The rise in ECB rates, continues Boursorama, will indeed have an impact on the life insurance of French women and men. At least, for all those who have opted for funds in euros. These are in fact composed of 80% government and corporate bonds, on average, which means that a rise in yield should eventually occur.
That being said, the expected increase will be gradual… and slower than that of bond interest rates.
Switching from life insurance to the regulated booklet, a good idea?
Some might therefore be tempted to take advantage of the rise in the yield of products such as the Livret A or the LEPto transit the funds placed on a life insurance contract.
It’s not a great idea, according to Boursorama, who reminds us that such arbitrations could put insurers in difficulty… and push them to block such operations as provided for by the Sapin 2 law. On good terms.