What is the impact of negative interest rates on French people’s savings? / Dino THELISSON / 2020

Titre : What is the impact of negative interest rates on French people’s savings? Type de document : Mémoire Auteurs : Dino THELISSON, Auteur Année de publication : 2020 Importance : 33 p. Note générale : Pour accéder aux fichiers PDF, merci de vous identifier sur le catalogue avec votre compte Office 365 via le bouton CONNEXION en haut de page. Langues : Anglais (eng) Mots-clés : Management SOCIALISME ; CAPITALISME ; ROI ; INVESTISSEMENT Résumé : Since the end of 2018, France has been experiencing a kind of social revolt, leading to numerous strikes and protests on a regular basis, with a common demand to improve the living conditions of French citizens. In this context, many topics have been put forward, such as the different types of pensions, the current level of wages, the right to unemployment. However, in all these debates and demands, we have heard very little about French people's savings, which play a major role in their purchasing power and therefore their living conditions. In this Seminar Paper, we demonstrate that the two investments most frequently used by the French people have a negative real rate of return, and that few people realize this. This situation leads savers to make bad choices for their investments and then decrease their purchasing power. The current situation of negative interest rates tends to accentuate and perpetuate this phenomenon. We will then see that the main solution to maintain a positive return is to accept more risk, by building a portfolio that is as diversified as possible in order to maximize the risk/return ratio. We will first define the terms and elements necessary to understand the subject, then we will see that fees, taxation, and inflation are elements that are not considered when making investment choices, whereas they are decisive on the real return perceived by the saver. Finally, the strong impact on the allocation and return on financial savings will be described.   Programme : PGE-Rouen Spécialisation : Finance d’Entreprise - Corporate Finance Permalink : https://cataloguelibrary.neoma-bs.fr/index.php?lvl=notice_display&id=529808