The year 2026 confirms the French public’s appetite for saving, but is gradually shifting the balance between different products. Life insurance continues to attract strong inflows, whilst the Livret A savings account is regaining some appeal following the rise in its interest rate. At the same time, rising bond yields and decisions by the European Central Bank are reshaping the market environment.

The Livret A

The Livret A nevertheless continues to play a major role in investment decisions. Its interest rate, which was lowered to 1.5 per cent on 1 February, was raised to 1.7 per cent on 1 August, following the rise in inflation linked to the conflict in Iran. This return, net of tax and social security contributions, makes it an attractive option for precautionary savings, even though the ceiling remains set at 22,950 euros. A rise in the ceiling to €30,000 is also being considered, notably to fund the ‘National Climate Change Adaptation Plan’. Such a measure could generate up to €10 billion in additional assets under management. It could also alter the balance between regulated savings accounts, bank accounts and life insurance policies, and could trigger significant transfers, sometimes to a greater extent than changes in interest rates.

Life insurance

Life insurance thus remains one of the main beneficiaries of this trend. In July, premiums reached €18.8 billion, a new record for that month, representing a 1 per cent increase compared with July 2025. However, net inflows stood at €4.7 billion, down from €6.7 billion in June. Since the start of the year, net inflows have totalled €41.3 billion, which is €8.7 billion more than in the same period in 2025. Behind these figures lies, above all, a shift in the composition of savings.

The rise in interest rates

The rise in bond yields is another key factor. The French 10-year OAT has risen from around 3.6 per cent at the end of 2025 to 4.4 per cent in early September 2026. This development is significant for life insurance. It will gradually enable insurers to invest in new bonds offering better yields and may therefore, in the long term, support euro-denominated funds. On the other hand, it reduces the market value of bonds already held. The risk becomes more acute if a rapid rise in rates is accompanied by a sharp increase in policy surrenders.

The European Central Bank

The ECB is also a macroeconomic factor to watch. Having raised its three key interest rates by 25 basis points in June, bringing the deposit rate to 2.25 per cent, the meeting on 10 September was eagerly anticipated. Against a backdrop of inflationary pressures and rising energy prices, the ECB announced its decision to raise its key interest rates by a further 25 basis points. The deposit rate now stands at 2.50 per cent.

For investors, the Livret A savings account retains its advantage of ‘liquidity’, whilst life insurance offers greater opportunities for diversification and the pursuit of returns. In this ever-changing environment, interest rates are just one factor to consider. Finankap’s wealth management advisers also take into account security, liquidity, returns and tax implications when designing long-term wealth management strategies – please get in touch!

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