Regulated savings accounts are stabilizing ahead of the storm
Philippe Crevel, Director of the Cercle de l'Épargne, presents an analysis of the results for the Livret A, the Livret de Développement Durable et Solidaire (LDDS), and the Livret d'Épargne Populaire (LEP) for the month of May 2024.
A typical May
Deposits into the Livret A savings account in May 2024 totaled 1.26 billion euros, a figure that is in line with the trend toward normalization observed since the beginning of the year. Although this amount is half that of May 2023, it remains slightly above the average for the past ten years.
The Livret A and the LDDS follow similar trends
The LDDS recorded inflows of 600 million euros in May, compared with 760 million euros in April and 1.05 billion euros in May 2023. Outstanding balances for the Livret A and the LDDS reached record highs, at 424.2 and 153.8 billion euros, respectively, bringing the total for both savings accounts to 578 billion euros.
Upcoming Political Uncertainties
However, the process of normalization in the savings market could be disrupted by the results of the European elections and the dissolution of the National Assembly. Political uncertainties could prompt savers to favor cash and the Livret A savings account, which traditionally serves as a safe haven.
Small-scale savers in financial difficulty
The Livret d'Épargne Populaire (LEP) saw a second consecutive month of outflows in May, with a net outflow of 40 million euros, following a net outflow of 270 million euros in April. Low-income households are forced to dip into their short-term savings to cover their day-to-day expenses.
In conclusion, May 2024 saw a return to normal levels of deposits into the Livret A and LDDS savings accounts, but political uncertainties could change the situation. Small savers, meanwhile, continue to face difficulties, as evidenced by the outflow of funds from the LEP.
