A doubling of the Livret A rate, from 1% to 2%, from August 1 in the wake of the rise in inflation, is “possible”, indicated the governor of the Banque de France, excluding however any blow exceptional thumb.
The Popular Savings Book (LEP) reserved for low-income households but which many do not have, might bring him a remuneration of 4.5%, instead of 2.2%, according to calculations by specialists.
A savings product held by the most French people, the Livret A has its rate calculated automatically twice a year. The calculation formula takes the average between, on the one hand, the average inflation rate of the last six months and, on the other hand, the average of the interbank rates, at which the banks exchange short-term money .
“As the application of the formula leads to a significant increase on the Livret A, and even more on the LEP (People’s Savings Book), there is, in our view, no justification for making an exceptional gesture. additional”, explained on France Info the governor of the Banque de France François Villeroy de Galhau.
If the governor applies the formula to the letter, which should lead to a rate of around 2%, his decision is required. If he wishes to derogate from it, the decision is then decided by the Minister of the Economy.
An official decision should come in the next few days, probably Thursday or Friday, sources familiar with the matter told AFP.
If this increase may seem like good news for French savers, it should not make us forget that the rate, even when revalued, will remain very much lower than inflation. The net return will remain negative, at a level not seen since the 1980s.
– Highest since 2013 –
In February, the remuneration of the booklet A had already doubled from 0.5%, a historic low, to 1%. Inflation in France was then limited to 2.8% in December over one year.
His compensation might double once more and reach 2%, following confirmation on Wednesday that inflation for June reached 5.8% year on year.
This revaluation would bring with it the rate of the Sustainable and Solidarity Development Booklet (LDDS).
If the 2% figure is confirmed, it would be the highest rate in almost 10 years, having been lowered from 2.25% to 1.75% in February 2013.
Since that date, the remuneration of the booklet A had continued to decline, until the previous increase six months ago.
Managed jointly by the Caisse des dépôts (CDC) and the banking networks, the Livret A is mainly used to finance social housing, while the LDDS is dedicated to the social and solidarity economy, as well as to energy savings in accommodations.
Between them, these booklets total more than 485 billion euros in assets, according to the CDC. This is much less than life insurance, which totals more than 1.850 billion euros in outstandings, according to France Assureurs.
The Livret A remains more advantageous than many savings products, and in particular euro life insurance funds, whose capital is guaranteed, but which, once taxes are taken into account, have a yield of around 1%, in mean.
Some 19 million French people can have access to the popular savings book capped at 7,700 euros, but more than half of them do not have one, said the governor of the Banque de France who called on them to seize of this savings solution.
These savings accounts benefit from a guaranteed interest rate, are exempt from income tax and social security contributions, and the money deposited remains available at all times.
