Overview
- French households withdrew a net €740 million from Livret A, which the Caisse des dépôts reported Tuesday after the February 1 rate cut to 1.5%.
- The February outflow extended a slide since autumn, following a record €1.87 billion withdrawal in January that defied the usual winter inflow pattern.
- Balances totaled €447 billion on Livret A, while the similar LDDS held steady at €165.2 billion and the better-paid LEP drew a €180 million net inflow.
- Savers have been shifting money toward higher-yield life insurance products as Livret A’s return falls, according to the Caisse des dépôts.
- The ECB warned in March that an energy shock could lift inflation, which could steer households back to inflation-linked regulated savings, while Livret A deposits managed by the Caisse des dépôts also help fund social housing and a planned 60% share of six EPR2 reactors that the government says will not squeeze housing loans.