2023-09-17 06:30:07
When it comes to savings, many French people turn to the famous Livret A. However, there are other solutions such as superlivrets and term accounts.
Saving without risk, superbooks and term accounts -iStock-ChayTee
The French and savings
The health crisis has encouraged the French to save a lot. As proof, since 2020, and according to data from the Banque de France, the cumulative surplus of financial savings of the French has reached 157 billion euros. Currently, 55 million French people hold a Livret A whose interest rate is set at 3%. However, this rate is considered too low by certain people who therefore choose to turn to superbooks and term accounts whose rates can reach 4%.
Superbooklets: what are they?
Banking establishments are continually seeking to diversify their offering of savings solutions to meet the needs of the French. And, for some time now, we have seen a strong comeback of superbooks, also called boosted rate booklets. Somewhat put aside in favor of the famous Livret A in particular, they fall into the category of bank accounts and not that of regulated savings accounts. In other words, the opening conditions, ceilings or even remuneration of these superbooks are defined by the banks. Superbooks are also taxed. Superbooklets attract a growing number of people because they offer a boosted rate over several months. In addition, payments can be unlimited (depending on the establishment), which is not the case with the Livret A, the LEP (popular savings book) or the LDDS (sustainable and solidarity development book).
Focus on term accounts
Term accounts (CAT) offer an attractive return. However, you have to be prepared to leave your money in these accounts for a while. Opening a CAT requires signing a contract with the bank. Your bank can offer you several CATs: fixed rate, progressive rate or variable rate. It can also offer you a contract including the opening of several CATs with different operations or even a contract committing you to open a CAT and subscribe to other savings products. For a CAT, and as specified on the official website of the French administration, the interest received is subject to the tax regime for income from movable capital.
CAT and superbooks: pay attention to the conditions
Term accounts and superbooks are safe investments but you must read the subscription conditions and others carefully before signing. In certain banking establishments, the boosted rates for superlivrets are only applied up to a certain ceiling. Concerning CATs, you must remember to carefully look at the duration of the blocking of the amounts saved. Depending on the banks, it goes from one month to several years. In addition, with these two savings solutions, interest is subject to the PFU (single flat-rate deduction) at 30%. Also, depending on the profile, CATs and superbooks may be less interesting and remunerative than regulated savings books.
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