12h05 ▪ 3 min read ▪ by Ariela R.

The latest figures from INSEE reveal a striking trend. The savings rate of the French has reached an unprecedented peak since 1979 (excluding Covid). This phenomenon says a lot about the mindset of households. Above all, it could reshuffle the financial cards in France. All the details in the following paragraphs!

In brief The savings rate reaches 18.8%, revealing growing distrust towards consumption.

Despite a favorable context, the French prefer secure investments for fear of a financial crisis.

Savings sharply increase, despite a favorable financial context

In France, the household savings rate rose to 18.8% of their disposable income in the first quarter of 2025 (compared to 17.7% at the end of 2024). Even more striking: the financial savings rate jumped to 9.8%. This designates the portion placed in financial assets.

For analysts, this is a historic record. These figures indeed contradict the forecasts of the Banque de France, which anticipated a gradual return to the pre-Covid level (around 15%).

Yet, everything seemed to indicate a return of household consumption. In 2024, purchasing power had increased by 2.6%. As for inflation, it had clearly eased. Even traditional savings products such as the Livret A did not slow down accumulation (despite a decrease in yields). A paradox that is mainly explained by widespread distrust!

Confidence Crisis: Finance Victim of a Worrying Climate

Why such cautiousness while the economic situation is improving? According to economist Philippe Crevel, the combined economic, political, and geopolitical context leads the French to be cautious. This notably refers to concerns around:

the war in Ukraine;

dissolution;

the current policy of the United States;

the growing public deficit.

All this weighs heavily. Especially, this accumulation of uncertainties fuels a decline in economic confidence. Households fear a rise in taxes. They therefore prefer to secure their resources.

Certainly, this reflex could soothe financial markets. That said, it poses a risk for economic recovery through consumption.

If the State wants to mobilize this windfall, it will have to restore confidence or channel savings towards strategic investments. Failing that, this caution could become structural. Enough to sustainably redraw French finance!

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