Even if the trend seems to be improving in 2017, 60% of the French are still in the red at least 1 time per year




The comparator banks Panorabanques.com reveals the results of his study 2017 on the French and bank overdraft : by need or by prudence, the great majority of the French wish to have an overdraft facility. Even if things appear to be improving, they are still a great many to exceed the limits allowed, this is a concern for everyone and the overdraft is expensive…

More than 2/3 of the French wish to have an overdraft facility

68% of the French wish to have an overdraft facility. Free in half of the institutions, this service costs on average€ 7 per year (fees for setting up or folder – outside agios). Customers who are more applicants for permission are of course those which are most often in the ” red “. 91% of people who exceed a monthly limit permitted want an overdraft (vs 68% on average). But by prudence, 41% of those who are never beyond want to still benefit from this flexibility of management.

The level of the overdraft is in general a function of income. It is customary for banks to agree to their clients, an authorization equivalent to half a month of income, but this is not systematic.
But 60% of the French exceed the permitted limit

The study shows that 23% of the French are in excess of the overdraft allowed at least once per month, 21% once per quarter, and 16% once per year.

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Exceeding the limit can be for everyone, regardless of income level

The French who earn less than 1 500€ per month are for 27% of them in the red each month, more affluent (income of over 3,000€ per month) is two times less often (13%).

But overall, even among the more affluent, they are 51% likely to be in excess of uncovered authorized at least once per year.

Monthly income Never exceeded Exceeded 1 time per year or more Exceeded 1 time per month or more Less than 1500 € 37% 63% 27% between 1500 and 3000 € 40% 60% 21% more than 3000 € 49% 51% 13% All income 40% 60% 23% /* Here you can add custom CSS for the current table */ /* Lean more about CSS: https://en.wikipedia.org/wiki/Cascading_Style_Sheets */ /* To prevent the use of styles to other tables use “#supsystic-table-356” as a basis selector for example: #supsystic-table-356 { … } #supsystic-table-356 tbody { … } #supsystic-table-356 tbody tr { … } */

Women use more the found that men :

  • The study shows that women are more likely than men to want to an overdraft facility : 72% against 63%
  • They also cross more often than the allowable limit (26% of women are exceeded in all months compared to 19% for men)

The differences in men/women Want to an overdraft In excess of the overdraft authorized every month Women 72% 26% Male 63% 19% /* Here you can add custom CSS for the current table */ /* Lean more about CSS: https://en.wikipedia.org/wiki/Cascading_Style_Sheets */ /* To prevent the use of styles to other tables use “#supsystic-table-357” as a basis selector for example: #supsystic-table-357 { … } #supsystic-table-357 tbody { … } #supsystic-table-357 tbody tr { … } */

Over the past five years, the French manage their cash :

  • Those who are in excess of the overdraft allowed each month are 23% in 2017, while they were 28% in 2013
  • In 2017, they are 40% to never exceed their authorization to be 5 points better than in 2013 !

“The ease of consultation and management offered by the apps of banks, warning systems or simply the awareness of the cost of the short are without doubt something to do with the decline in the number of people who are often in the red,” explains Guillaume Clavel

The French, who are most often in the red feel a greater need to cover

  • 56% of French people in excess of once per month have need of an adviser’s dedicated staff (from 44% in average)
  • 26% of French people over once a month say they need a tool of management of budget (compared to 18% on average)

A bill heavy but stable overall in the past 3 years

After a sharp decline in 2014, due to the capping of the commissions intervention, the cost of exceeding overdraft increases slightly in the past 3 years, to reach about€ 60 a year.

  • Since 2014, most banks are in line with the legal ceiling of€ 8 per commission response : 16 banks were below the ceiling in July 2015, they are now more than 11.
  • In the current context, the rate applicable to the overdraft allowed is still very high : it is for example of 7% per year for Boursorama Bank and BforBank, 12% to the Caisse d’epargne Île-de-France, 15% in the Postal Bank and of the order of 16% at BNP Paribas…
  • As soon as the limit is exceeded, and that the account turns bright red, the bill becomes even more cumbersome because the rate applied is even more penalizing : it can be up to 16% in the area of online banking and 20% in some of the traditional banks.

These rates only apply to amounts reduced over short periods of time, especially the commissions intervention, charged by 94% of the banks, which weigh heavily on the finances of the French.

Note : the law n° 2013-672 of 26 July 2013 of separation and regulation of banking activities has introduced a cap on the commissions intervention in case of exceeding the overdraft allowed (article 52) Since 1 January 2014, for the physical persons not acting for professional needs. This capping is implemented by the decree n° 2013-931 of 17 October 2013, which limits the fee to € 8 per transaction and€ 80 per month.

 

TRANSCRIPT of Guillaume Clavel, President of Panorabanques.com
“Everyone is affected, regardless of the level of income the excess of discovered. The costs associated with the exceeded overdraft authorized account for a third of the invoice bank charges. The average bill is€ 60 a year, but it can quickly exceed 200€.
To limit the risk of exceeding overdraft allowed, the new digital tools made available to the customers are very useful : they are easy to use and allows you to monitor its account on a daily basis, receive alerts and make adjustments between accounts and savings accounts.
To limit the costs associated to the exceeding of overdraft allowed, it is necessary to establish a dialogue with its bank. Also, remember to compare it with other banks as they all have different practices as regards the authorization of discovered that the rate applied or the commissions intervention.
The overdraft is a true service, that the French plebiscite. The néobanques Account type – Nickel, C-zam or N26 do not offer this service. Don’t forget it when you compare the banks, before opening a new account. ”

 

About Panorabanques.com
Leader of the comparison banks over the internet, Panorabanques.com is a free service for information and comparison of bids bank. Panorabanques.com caters to individuals who want to optimize their banking relationships : a clear and present over 180 banks, 196 tariff lines and more than 20 services. Panorabanques.com also compares savings products and credit.

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Profile of Guillaume Clavel, founder and president of Panorabanques.com

Man of business, William Clavel puts them at the service of the site Panorabanques.com.com his experience in finance and the Internet. He spent ten years in the field of banking as an Analyst at Credit Lyonnais and the Chargé d’affaires at Banque de Gestion Privée. He held the position of Chief Financial officer of the Group Books Hachette. In 1999, he was one of the founders of Mistergoodeal, e-commerce site sold in 2005, at M6 Group, where he is the Director-General until the end of 2008. In 2010, Guillaume Clavel is the President of the company that publishes the site Panorabanques.com that he created with M6, Benoit Lassara and Thibaut Ravisé.

Guillaume Clavel is a graduate of Sciences Po, IEP Paris.

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