Currently, no other savings is more appreciated by the French than the Livret A. With a remarkable interest rate, with reliable security, the Livret A has attracted more than half of the French. But despite this, it still has some constraints. To begin with, this booklet has a few characteristics that can be interpreted as limitations for its beneficiaries. For example, it is absolutely forbidden to hold more than one. In the event that a person decides to break this rule regarding a duplicate Booklet A, what might happen to them? We’ll give you the answer right away!
Booklet A: what are its characteristics!
To put it simply, the Livret A is a savings product that is erected by a few regulations. Designed in 1818, the Livret is presented to the French as being a reliable and obviously remunerated savings. Then, the latter also offers a regulated interest rate, which the State itself sets each year. Even today, this rule still applies to this savings. Then, another advantage of the booklet A, its interest is tax exempt on income and social contributions.
It is for these different reasons that the Livret A attracted so many French people. But despite its many advantages, the Livret A also has some limitations. To begin with, investments for this savings are limited to 22,950 euros. Then, what you probably don’t know is that the State condemns the possession of several Livret A. What is the reason for this constraint?
Duplicate Booklet A: holding more than one of this savings plan is prohibited!
As a reminder, it is strictly forbidden by law to hold a duplicate of your Livret A. Although you probably do not know this prohibition, the reason is nevertheless very obvious. Indeed, this prohibition is explained by the fact that the Livret A is a regulated savings product intended for all French people. Thus, by allowing the holding of many Livret A, this will create an undesirable situation. Indeed, this action will encourage excessive savings.
As a result, some French people would simply be deprived of it. In addition, each Livret A is linked to a single person, with a single tax number. So, by holding a duplicate Booklet A, you are breaking the law and you risk penalties. If you violate this law, you risk fine of up to 2,000 euross, and a repayment of your interests to the State.
