have the banks’ euro funds bottomed out?

Decreases, again and again: the communication of the major banking networks on the returns of the funds in euros of their life insurance companies has sounded like a refrain in recent years. If, overall, the trend remains, the banks now seem to be reluctant to further reduce the remuneration of these funds appreciated by savers for their capital guarantee.

On average, the market served 1.3%, according to France Assureurs. At the bottom of the pack in terms of yield, La Banque Postale certainly made a further decline in 2021. Its consumer contract, Vivaccio, fell from 0.70% in 2020 to 0.65% last year. These rates are net of fees but bear 17.2% of social security contributions – the return net of deductions will therefore only be 0.54%. And this is not the worst rate of the establishment: the Solésio Vie contract only reported 0.50%.

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Another player in decline: the Caisse d’Epargne. Its Millevie Essentielle life insurance posted a rate of 0.75% compared to 0.80% in 2020. For the others, on the other hand, the trend is rather towards stabilization, or even an increase in the rates paid thanks to bonuses – increases in rate for savers meeting certain criteria.

Some players have also boosted their bonus policy in 2021, such as Société Générale. So far, this bank offered a higher return to contracts of 76,200 euros. From now on, this bonus is doubled by another, linked to the share of units of account subscribed to in the contract: the basic return can increase by 50% if the proportion of these risky investment vehicles exceeds 50%. As a result, the 2021 returns of the red and black bank are doing the splits. From 0.75% to 1.84%, for example, on the Sequoia contract.

old abused products

At Crédit Agricole too, rates now vary according to the inclination of policyholders for risk. Below 25% of units of account, the return on the fund in euros is limited to 0.65%, but it climbs to 1.05% with 30% to 50% of risky supports. And reaches 1.45% if the client holds more than 50% of units of account. Same observation for LCL products. The LCL Vie contract has a base rate of 0.65% (for management fees of 1%) which can rise to 1.45% for policyholders with 50% or more units of account.

One player has opted for a slightly different strategy: BNP Paribas. If the bank also offers a bonus to its customers favoring units of account, it wishes to communicate on average returns excluding bonuses. It fits, she says, in a logic “convergence of the rates served regardless of the products and distribution channels” and specifies that 90% of its contracts have a net rate of 1.10%. As a result, BNP Paribas contracts serve among the best non-bonus rates in the banking world.

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