At the moment, the French are facing a special situation. On the one hand, their purchasing power has improved and on the other, the economic situation seems to be deteriorating. This is when more and more of them want to invest their money instead of consuming it. But which savings products are most popular with the French? Here are some answers.
Passbooks are the preferred means of savings for the French. If they have between 1,000 and 10,000 euros to invest while waiting to be able to invest, they rely on the livret A and the sustainable development and solidarity booklet. The advantage of the livret A and the LDDS is that they are exempt from social security contributions and taxes. You just need to feed them by transfer via a checking account. And if your different accounts are within the same bank, the transaction is free. But thus benefiting from a tax exemption, the yield on these types of passbooks is lower than inflation with an unstable rate.
Despite everything, current accounts remain the preferred investment product of the French. They leave a large majority of their money there throughout the year because they find financial investments unattractive. In addition, if the current economic environment improves, it is no longer possible to release funds from a current account. Indeed, with the approach of the holidays or the start of the school year, for example, they will have to meet the related expenses.
The PEL is a reliable investment for those who wish to tie up between 30,000 and 40,000 euros in order to earn more after a few years. This placement is popular, but it can be quite complex. To find your way around, you have to have a plan of more than 4 years. So you can get your money back at any time. You should know that the ELP imposes a payment ceiling defined at 61,200 euros.
Life insurance is preferred by the French who have 100,000 euros to save. Of course, this investment vehicle is mostly dedicated to long-term savings, but it is quite possible to store savings there for a short time only. However, it is necessary to negotiate an exemption from payment fees to avoid paying a tax the amount of which does not exceed 4,600 euros (for a single person) or 9,200 euros (for a couple) on the earnings withdrawn annually.
Real estate is always a safe investment. This market remains stable, which reassures the French. The stone also constitutes a concrete investment which is not yet ready to be shaken. You just need to buy real estate directly, but there are other ways to invest money as well. These are real estate assets such as SCI, OPCI and the SCPI. They allow regular income. Moreover, SCPIs are among the best investments of the moment. All you have to do is buy back shares in a company managing a real estate park and receive a percentage of the rents. The amount is proportional to the amount invested.