According to the Banque de France dashboard, household savings hit a record high in the second quarter (Photo credit: 123RF)

According to the Banque de France dashboard, household savings hit a record high in the second quarter (Photo credit: 123RF)

The Banque de France has just published its dashboard of investments and household wealth for the 2nd and 3rd quarters of 2020. The French savings rate has reached a record level of 18.6%. The deposits a? sight and passbooks drained 74.5% of annual financial investment flows.

A record savings rate of 18.6%

According to the Banque de France dashboard on household investments and wealth in the 2nd and 3rd quarter of 2020, household savings reached a record level in the second quarter with 98.9 billion after 71.8 billion in the first quarter . This appetite of the French for savings is of course the consequence of the fall in household consumption during confinement (-11.9% in value in the 2nd quarter).

Also in connection with the health crisis and the containment measures, the savings rate of the French jumped. It went from 15.7% in the 1st quarter to 18.6% in the 2nd quarter of 2020. France is not the only country concerned. The phenomenon also affects other European countries: it reached almost 22% in Germany and has quite simply doubled in the United Kingdom (over 12%). The same goes for the United States, where the savings rate has exceeded 16%.

At the same time, the flow of bank loans remained stable (13.5 in Q2 after 13.2 in Q1), but remained below the flows of previous years (19.7 on average over the period 2017-2019).

The deposits a? view and booklets represent 74.5% of annual financial investment flows

Over a rolling year, the annual household investment flow is? 181.9 billion, up 27.9 billion from the previous quarter. Savings invested in fixed income products increased markedly (149.7 billion after 123.2 billion), in particular in the form of deposits a? view or savings accounts (135.6 billion) which alone represent 74.5% of annual financial investment flows. All interest rate products represent 82% of flows. Investments in equity products increased more moderately (32.6 billion after 25.4).

Households’ financial wealth reaches 5,431.6 billion euros

In the end, the gross financial wealth of the French reached 5,431.6 billion euros in Q2, an increase of 271.3 billion compared to Q1. This increase is due for 30% (81 billion) to the flow of financial investments and for 70% a? revaluation of assets held.

This portfolio is divided into three large thirds: sight deposits and passbooks, life insurance funds in euros and equity products.

Interest rate products represent 66% of financial assets: 49% are broken down into sight deposits and passbooks and 47% into funds in euros for life insurance contracts.

Equity products represent 32% of household financial wealth, of which almost 57% is invested in unlisted equities.