Savings: The French Favor the Livret A but Admit Their Shortcomings
With interest rates on regulated savings accounts set to be revised on August 1, a study published on July 9 by the Caisse d'Épargne paints a picture of savers who are attached to their favorite products but whose financial literacy remains limited. This finding raises the issue of financial education once again, at a time when the French have never saved as much as they do now.
The timing is no coincidence. Just a few weeks before the Livret A interest rate is set to be revised, the Caisse d'Épargne has released a study on how the French view their savings. And the verdict is clear: while the French save in large numbers, they are unfamiliar with the tools at their disposal.
An Unshakable Top Three
Unsurprisingly, the Livret A savings account, life insurance, and the PEL savings plan make up the top three most well-known savings products among the French. Behind these long-standing staples, awareness drops off sharply: fewer than one in two French people say they are familiar with the PEA (45%), and the figures drop to just 34% for cryptoassets, 31% for securities accounts, and 26% for time deposit accounts and mutual funds (FCP/SICAV).
The case of ETFs is particularly striking. These exchange-traded funds, which in just a few years have become the preferred entry-level product for retail investors worldwide, are known to only 9% of French savers. Among 18- to 24-year-olds—who are supposed to be the generation most comfortable with investment platforms—that figure drops to just 8%. Only 25- to 34-year-olds fare better, with 17% familiar with them.
The Livret A: A Safety Net and Gateway t
The study confirms the unique status of the Livret A in the financial portfolios of the French. For 52% of savers, it is first and foremost “a safety net for emergencies.” It also serves as a “gateway product” to savings: people start by filling up their Livret A before eventually considering other investment vehicles.
This precautionary mindset comes at a cost: savings are overwhelmingly allocated to liquid and guaranteed products, at the expense of longer-term investments that could potentially yield higher returns. This issue is all the more pressing given that the expected drop in the Livret A interest rate will automatically erode the return on these precautionary savings.
The Crypto Generation Before the Stock Market Generation?
Another notable finding: younger generations show a marked preference for cryptoassets. Cryptocurrencies are known to 35% of those under 35, a figure nearly identical to that of all investors (34%). But their appetite for them is significantly stronger: 26% of 18- to 35-year-olds say they’re ready to invest in them, and as many as 34% of 18- to 24-year-olds, compared to an average of 17%.
A paradox is emerging: a generation that is unfamiliar with ETFs—a diversified and low-cost product—yet says it is ready to invest in cryptoassets, which are far more volatile. This raises questions about the channels through which young people are building their financial literacy, from social media to influencers.
Financial education, “more essential than ever”
For the Caisse d'Épargne, the conclusion is obvious. “This study underscores once again that it is essential to educate the French public. When it comes to saving, diversifying investments is often key,” emphasizes the bank, which notes that “our advisors are committed to supporting them and helping them make the right choices at every stage of their lives based on their profile, age, plans, and priorities.”
Beyond self-serving arguments, this assessment echoes that of many industry players: against a backdrop of persistently high inflation and a historically high household savings rate, the challenge is no longer to convince the French to save, but to help them save more effectively. The adjustment to the Livret A interest rate—which will remind millions of savers that their preferred investment won’t yield returns forever—could be the catalyst for this shift.
