Placements: Should I really prefer life insurance for booklet A?

The French are massively turning to life insurance at the expense of booklet A. But is this choice really wise? Yield, taxation, risks … What should we expect from these two investments?

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The favorite booklet of the French has lead in the wing. In April, the booklet A recorded net withdrawals of 200 million euros. An outing which confirms an increasing disenchantment of savers for booklet A: over the first four months of 2025, the collection reached only 1.53 billion eurosagainst 7.64 billion euros Over the same period in 2024. An disaffection which he owes to the decrease in his yield: after a year and a half of rate frozen at 3%, the return of the booklet was lowered to 2.4%on February 1, and should experience an even more pronounced fall on August 1, by being planed at 1.7%.

In this context, the French prefer to change their piggy bank, and “Reclaim part of their precautionary savings to long -term products such as life insurance, which has experienced a clear rebound since the beginning of the year”notes Philippe Crevel, director of the savings circle in his monthly note. A passage from one product to another confirmed by France insurers’ figures: out of the first three months of the year, life insurance payments have an increase of 1.9 billion euros compared to the same period of the previous year.

Two additional savings products rather than equivalent

However, for savers who have already acted or envisaged this passage from booklet A to life insurance, it must be kept in mind that these savings products are not equivalent, for at least three reasons.

First, unlike a booklet A, all of your life insurance is not always guaranteed. Only the part invested in Euros funds ensures you find all of your capital. However, according to France Insurers, it is essentially to the units of account units (UC) – with a risk of capital loss – that the additional collection of the start of the year has managed: +10%, “While the supports in euros are almost stable”. Thus, part of the savers therefore takes an additional risk by opting for life insurance.

Then taxation. The average yield of life insurance in euros in 2024 seems much greater than that, current, of booklet A: 2.6% against 2.4% and even 1.7% probably this summer. But the latter is a net tax return, while you will need, in life insurance, you pay the single flat -rate levy (PFU or flat tax) of 30% in the event of withdrawal from your capital before 8 years. This is equivalent to a net return of 1.82% on the average rate of guaranteed capital supports. This, keeping in mind that this rate is not known in advance, unlike booklet A, and that it can vary greatly from one contract to another (between less than 2% and more than 4% gross, for example, in 2024).

Finally, these two investments do not meet the same savings objectives. Life insurance turns out to be a savings product used in principle to finance long -term projects (real estate, marriage, retirement, etc.). Conversely, the booklet A must serve as a precautionary piggy bank, on which it is recommended to keep between three and six months of salary to deal with the unforeseen events of everyday life (repairs, work, etc.). A starting point necessary to invest in the longer term.