How can I protect my money in the event of a financial crisis?

What are the risks to your money in the event of a financial crisis or war?

Bank failure or asset freeze

Bank failure is not just a theoretical scenario. The crises of 2008, then Cyprus (2013) and Greece (2015) have shown that even in developed countries, savers can find their access to money restricted. Is it dangerous to leave money in your current account? The answer depends on the amounts and your diversification.

Current legal protection

In France, the Fonds de Garantie des Dépôts et de Résolution (FGDR) protects your deposits up to 100,000 euros per bank and per depositor. This guarantee covers :

• Regulated current and savings accounts
• Livret A (enhanced protection because managed by the State)
• Life insurance (up to 70,000 euros per policy and per insurer)
• Term accounts and certificates of deposit

This 100,000 euro protection offers real security for most savers. However, there are limits: beyond this ceiling, your assets are not guaranteed in the event of bank failure. The Cypriot crisis demonstrated this, where depositors with more than 100,000 euros lost up to 60% of their surplus assets.

Can you lose your money in the bank?

Theoretically, yes. In the event of a bank collapse, sums in excess of 100,000 euros are not protected. Even more worrying: in the event of a systemic banking crisis affecting several establishments simultaneously, the FGDR itself could be insufficient to compensate all depositors.

Bank accounts can also be blocked in the event of a crisis. In Greece, withdrawals were limited to 60 euros per day for several weeks to avoid a banking panic. In Cyprus, banks remained closed for 12 days. These situations, though rare, show that unlimited access to your money is never guaranteed at 100%.

Should I put my money in several banks?

It's a prudent and effective strategy. By dividing your assets between 2-3 banks, you multiply the protection of 100,000 euros. For example, with 250,000 euros spread across 3 different banks (each with less than 100,000 euros), your capital is fully guaranteed. This diversification also protects you if a specific bank runs into difficulties.

Inflation or the devaluation of savings

Inflation acts like an invisible tax, silently eroding your purchasing power. With inflation at 5% and a Livret A savings account at 3%, your money actually loses 2% in value every year. Over 10 years, this represents a loss of purchasing power of 20%.

Inflation protection

Some investments offer greater resistance:

• Real estate: Valuation generally indexed to inflation
• Actions: Companies that pass on inflation to their prices
• Precious metals: Gold and silver, historic safe havens
• Indexed bonds: OATi indexed to French inflation

Traditional savings (passbooks, current accounts) are still necessary for liquidity, but they should not represent your entire assets if you want to preserve your purchasing power over the long term.

In the event of war or geopolitical instability

How do you protect your money in the event of war? This question, long taboo, is once again becoming relevant in the face of international tensions. History shows that states sometimes adopt exceptional measures in times of conflict:

Historical precedents

• 1945: Measures on private gold in France
• 1982: Strict exchange controls
• 2015: Capital controls in Greece
• 2022: Freezing of assets under international sanctions

These examples do not mean that widespread confiscation is imminent, but they do serve as a reminder that, in exceptional situations, normal rules can be modified. Geographical diversification (holdings in several countries) and diversification by type of asset then become an additional element of protection.