BOOKLET A. Guest of the 1 p.m. news on TF1 this Friday, the Minister of the Economy Bruno Le Maire will announce the upgrading of the booklet A.
[Mis à jour le 14 janvier 2022 à 10h25] The rate of the livret A will experience a slight revaluation of 0,5% at 0,8% starting the February 1, 2022. This Wednesday January 14, Bruno the Mayor was to confirm this increase on the TF1 set during the 13 hour newscast. Nearly 55 million French people are affected by this measure and should see their interests rise by 16,50 euros per year, for an average outstandings of 5 500 euros. New interests rising from 27,50 euros at 44 euros. This increase in the livret A is correlated with the significant increase in inflation, observed at 2,8% last December. Despite this revaluation, the rate of the livret A will remain well below that of inflation and will not protect the savings of the French in the face of the sharp rise in prices. As a reminder, the rate of the livret A is calculated from a mathematical calculation taking into account the level of inflation and the interest rates.
With this increase, the livret A will therefore remain a precautionary investment but not the best way to draw interest from your savings. For this, the popular savings account (LEP) is preferred for eligible people. Subject to resources, the LEP is a guaranteed investment reserved for people domiciled in France and whose resources are limited (20,296 euros of reference tax income for a single person, 31,135 euros for a couple). Its rate, located at 1%, will also be reassessed due to runaway inflation. A hell of a boost coop for LEP which should reach a rate of 2,2% ! the LEP ceiling, him, is fixed at 7,700 euros, excluding capitalized interest. Its extremely attractive rate might well make it a real alternative to the livret A in the eyes of savers. Are you eligible for LEP? In France, 15 million people can benefit from it.
Remember that the livret A, like the LEP, remains a tax-exempt savings product. Interest earned by savers is not subject toincome tax, nor to social security contributions. To find out the amount of your interest following the increase in the livret A rate to 0,8%, Find our complete file below and all the answers to your questions, as well as the benefits to be drawn from this increase in the livret A rate.
In all likelihood, the livret A rate should drop from 0,5% at 0,8% to February 1, 2022. A significant increase for the preferred savings product of the French, frozen since February 2020 at 0.5%. No big revolution to be expected, but the beneficiaries should still see their interests increase slightly. let’s remember that 1 000 euros paid on a livret A at 0,5% relate 5 euros interest. If you have a larger sum in your savings account, namely 10,000 euros, you will collect 50 euros in interest at the end of the year. With the move to 0,8%, a savings of 1 000 euros on a Livret A would earn 8 euros per year to the beneficiary, i.e. a net gain of 3 euros.
Discover your interests with the passage of the rate of A booklet at 0,8% :
- Savings of 1 000 euros : 8 euros interests (3 euros in net earnings)
- Savings of 2 000 euros : 16 euros interests (6 euros in net earnings)
- Savings of 3 000 euros : 24 euros interests (9 euros in net earnings)
- Savings of 4 000 euros : 32 euros interests (12 euros in net earnings)
- Savings of 5 000 euros : 40 euros interests (15 euros in net earnings)
- Savings of 10 000 euros : 80 euros interests (30 euros in net earnings)
- Savings of 22 950 euros (ceiling) : 183,60 euros interests (68.85 euros in net earnings)
Since February 1, 2020, the livret A rate is frozen at 0,5%. A historically low rate, and a negative real return for the livret A, below theinflation which is at the height of 2,8%. As a reminder, the rate is set by the Ministry of the Economy and Finance on the recommendation of the Banque de France, according to a mathematical calculation taking into account the level of inflation and interest rates. Very popular with the French, remember that the livret A has a significant advantage: its interest is not subject to income tax and social contributions.
So what is the role of an A booklet? The latter can be likened to a precautionary savings, in addition to his current account. It is advisable to place two to three months’ salary in your livret A. Do you have a little extra nest egg and you are looking to study savings and investment products that would allow your money to grow? Consult our file to know the alternatives to the booklet A!
The limit for Livret A is set at 22 950 euros, for individuals. Remember that the payment of interest can quite exceed this limit. As an indication, associations benefit from a much higher ceiling, at 76,500 euros. Anyone, whether a minor or an adult, can open an A booklet., it is not possible to have more than one in different establishments. To open a livret A, you must sign a written contract with your bank, detailing the authorized operations (transfer, payment, withdrawal, etc.). It is forbidden to combine two regulated booklets of the same type (A booklet and Blue booklet) for the same person.
On the other hand, it is quite possible to combine an A booklet with a Sustainable development booklet (LDD) or a young booklet. In addition, it is possible to combine regulated passbooks within the same tax household. To close a livret A, all you need to do is contact your banker, by mail or by going to a branch. You must specify the reference of your livret A and fill in the details of your current account, LDD, CEL … or other account to which you wish to transfer the funds. In the event of closure during the year, capitalized interest is credited to the account on the day it is closed.
The calculation of the interest of the livret A occurs the 1is and 16 of each month, so every fortnight. In other words, if you deposit money on your livret A between 1is and the 15th of the month, the calculation will be effective from the 16th. If you make a deposit between the 17th and the end of the month, you will have to wait until the following month for the date of the value to be taken into account in the calculation of interest . Have you made a withdrawal? Interest is calculated for the current period.
The total interest is added to the capital at the end of the year. When you want to calculate your interest, you should therefore multiply the balance of your passbook by its rate and divide it by 24 (number of fortnights in the year). But beware, this calculation has only a theoretical value. To calculate your return, you must take into account all the movements made on the book.
This is one of the advantages of this regulated savings product. The interests of the livret A are exempt from income tax. They are also not subject to social security contributions. The Livret A also allows transfers and withdrawals without limit of number, and without charge. Finally, It allows the saver to have available capital immediately.
