YOUNG LOOKBOOK 2022. Regulated and 100% tax-exempt, the youth savings account is raised from February 1, 2022. Rates, ceilings, benefits… All the answers to your questions.
[Mis à jour le 1er février 2022 à 08h53] Are you between 12 and 25 years old and live in France? You can request the opening of a young booklet free. Only condition, that you do not already have one. And precisely, the rate of the young booklet evolves from February 1, 2022. Indeed, its remuneration doubles from 0.5% to 1%. Remember that this rate is set freely by banks, but can no longer be offered below 1%.
All banks can distribute a youth booklet. Some assign a debit card to the account holder. When this is the case, the card is often only usable in the vending machines of the network. An initial payment of 10 to 15 euros is generally requested at the opening. It should be noted that the booklet can be kept until December 31 of the year of the holder’s 25th birthday.
Since 1998, the banks distributing the Young Savings Account have themselves set the interest rate for savings. However, his remuneration is indexed to that of the Livret A and the regulations require that the rate of the Livret Jeune be at least equal to that of the Livret A (i.e. 1% since February 1, 2022). But in practice, banks serve their young customers a more attractive rate than on other regulated savings products.
It is possible to place up to 1 600 euros on a young booklet. But in the same way as for the Livret A or the LDDS, the capitalization of interest can bring the balance of the savings beyond this ceiling.
As with other savings accounts, interest on the Livret Jeune is calculated every two weeks, on the 1is and the 16th of each month. Payments bear interest from the first day of the fortnight following the transaction and withdrawals from the last day of the fortnight preceding it. In other words, if you deposit an amount in your passbook between 1is and on the 15th of the month, interest will accrue from the 16th of the month. If you make this payment between the 16th and the last day of the month, you will capitalize interest from the 1stis day of the following month.
Conversely, a withdrawal takes place directly on the current period. A withdrawal therefore cancels the interest (for the amount withdrawn) from the last day of the previous month if it is made before the 16th of the month, and from the 16th of the month if it is made following.
The total capitalized interest appears on the account on December 31 of each year.
But then, how much will you earn with the increase in the rate of the young booklet to the tune of 1% the February 1, 2022 ? For an outstanding amount of 1,000 euros, with the old remuneration at 0.5%, the annual interest amounted to 5 euros. From now on, with the revaluation of the rate at 1%, your new interest amounts to 10 euros. That is a net gain of 5 euros.
The young booklet is completely exempt from taxes. The interest it produces is therefore not subject to theincome tax and are not subject to any social security contributions.
Banks may impose a minimum amount for any transaction. In practice, this amount is generally around ten euros. Similarly, a withdrawal cannot make the account debit. Banks often impose a minimum balance of 10 euros on the passbook.
The holder of a young savings account can make deposits at their convenience, regardless of their age. However, this is not the case for withdrawals. Before turning 16, the holder must have the agreement of their legal representative to make a withdrawal. The legal representative can then oppose any withdrawal operation until the savings holder is 18 years old.
It is quite possible to hold a Livret Jeune alongside a Livret A. The combination of the two products can also represent a good operation. The Livret Jeune has a much lower ceiling than the Livret A. But its interest rate being often higher, the capitalization of interest is more prolific there. Also, it may be interesting to keep a Young Booklet until you are 25, then pay the balance to your Booklet A.
The closing of a Young Booklet is done free of charge, on simple request of the holder. The bank can also proceed to an automatic closure, on December 31 of the year of the holder’s 25th birthday. The balance will then be paid into an account designated by the latter or, failing that, into a suspense account.