What happens to your savings ?




To plan your life and have a margin of manoeuvre large enough, the best option is to make a savings. This system is old as the world has evolved and is today one of the most promising solutions selected by the most men.

However, a question that many are asking is what the banks and financial institutions make the savings that are deposited by investors. To answer this question, so we will see what the purpose of your savings and what the banks can do or not do with your savings.

What is your savings

The savings represents a reserve for investors, but on the contrary represents a source of funding for banks and other financial institutions. Hey, yes the banks reinvest your savings, not to make profits, trade and commerce, but to finance local businesses and invest in the energy sector. This is possible thanks to the legal provisions in force in the field.

It must, however, say that this is not the whole of the savings that is reinvested by the banks. The reinvested amount represents only 40 percent of the latter. 60 percent are retained in the fund deposit and consignment office.

What other investment can banks do with your savings

The idea received according to which banks use your savings and make money on your back as you may have noticed, is erroneous.

The bank may :

  • Invest part of your savings
  • Fund local projects with your savings
  • Direct you to place your savings

However, it will not be able to use your savings to invest in the stock market, at least, not in the values at risk. This was done so in order to protect as much as possible the investor. Your savings is used in part for investment, but in its great majority is kept by the caisse de dépôt et logging even called the CDC.




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