Your adviser's article · No. 1Roland BOUVIERMonday 26 October 2026 · 5-minute read
Rates at 5%: what the rise means for your savings.
France is borrowing at 5% over ten years again, a level not seen since 2002. Where does this rise come from, who wins, who loses, and what adjustments should you consider? I explain it all, simply.
You've probably heard it on the radio or read it in the paper: “rates are rising”. Behind this rather abstract phrase lie very concrete consequences for your savings, your life insurance and your property plans. Let's take things one at a time.
1. Where does this rise come from?
Three reasons add up.
Inflation is back
Oil and gas prices soared this summer. Prices are rising again: around 3% year on year in the euro area.
The ECB tightens the screws
To curb prices, the European Central Bank has raised its rates twice this year, in June and then in September. Its deposit rate now stands at 2.50%.
France is a concern
Debt close to 120% of GDP and an uncertain 2027 budget: investors are asking France for about 1.5 points more than Germany to lend to it.
2. What it causes
Remember just one image: the seesaw. When rates rise, the value of bonds already issued falls, because new ones pay more.
Euro funds will pay more
Insurers are gradually reinvesting money at higher rates. Returns follow, with a lag: 2.63% on average in 2025.
Bond funds are falling
That's the seesaw. Unit-linked funds invested in bonds may show a temporary fall.
Borrowing costs more
Banks follow government rates. Mortgage rates could rise in the coming months.
3. Where do your investments stand?
To choose well, you need to compare what each investment yields today.
4. Switches worth considering
Here are the options I'm currently looking at with my clients. Each depends on your situation: let's talk before acting.
Don't sell in a hurry
A fall in a bond fund is only a loss if you sell. Keep a long-term view.
Take advantage of high bond yields
Fixed-maturity bond funds let you lock in a yield known in advance over several years, if held to term. It's an opportunity rarely seen in twenty years.
Put idle savings to work
Beyond your emergency fund, money left in a savings account at 1.70% earns less than inflation. A good euro fund can take over.
A property project? Secure a fixed rate
If you're planning to borrow, it's better not to wait too long, and to avoid variable rates. Also consider renegotiating your loan insurance.
- Rates are rising because of inflation, the ECB and French debt.
- It's good news for euro funds, less so for borrowers.
- Now is a good time to take stock, not to panic.
General information article, which does not constitute personalised advice. Past performance is not a guide to future performance; unit-linked funds carry a risk of capital loss. Figures as at 23 October 2026.