2023-09-10 15:14:04
France is hard hit by the economic crisis. Its treasury suffers from a lack of resources and an overwhelming debt which weighs heavily on its economy. Faced with this situation, the government’s room for maneuver has been considerably reduced.. To try to turn things around, the authorities have opted for an austerity policy. After the holders of the Livret A, whose rate was maintained at 3%, it is the turn of the LEP holders to become disillusioned.
The government has already removed certain aid measures for the most vulnerable categories. These measures will have to continue in 2024. Moreover, the finance law for this year promises to be very tight. In addition to these measures, the year 2024 brings other bad news to the French. The revision of the rate of the Popular Savings Booklet (LEP) is one of the pieces of news that does not rejoice savers. Thus, the 9 million people who have a LEP will be unpleasantly surprised in the near future by the drop in the interest rate on this booklet, which is currently at 6%.
It should be remembered that these rates depend on consumer prices. Concretely, for the LEP rate to remain at 6%, inflation would have to be at 6% between July and December. However, the inflation rate is falling. It is currently 4.9%, according to INSEE. So the drop in the LEP rate is beyond doubt. Specialists explain that the Banque de France will have to suggest to the government to lower the LEP interest rate from February 1.
5% bankbooks are appearing
However, borrowers can counterbalance this bad news with more positive news. Indeed, faced with the rise in Livret A (3%) and LEP (6%) rates, banks are playing on competition to attract savers. Bank accounts have seen their rates explode. “Super booklets”, a variation of the bank booklet offering promotional interest rates, are making a comeback on the market. For example, Fortuneo offers a boosted rate of 5% for the first four months of investment. However, this type of investment may be less advantageous than Livret A, due to the application of the 30% flat tax. It must be said that these booklets are increasingly interesting, particularly for individuals who have reached the ceiling on Livret A and LDDS.
For savers willing to take a certain level of risk, structured products would be a good option. Also known as formula funds, these savings products are back and offer a rate of return of 5-12% per year. Another advantage of this investment: the saver will be entitled to a capital guarantee, which helps minimize risks.
1694371421
#bad #news #LEP #holders #drop #interest #rate #inevitable
