Tax-free (in whole or in part), liquid, guaranteed by the State… all that was needed were more attractive interest rates for regulated savings to become really attractive. After a floor at 0.5%, the Livret A account has already made a good comeback with 1% last February, then 2% last August.
Never two without three; will it be at 3% or more on February 1, 2023? The Governor of the Banque de France, François Villeroy de Galhau, recently confirmed on France Info that an additional boost will be experienced around mid-January. But any economist knows that these rates are calculated according to two parameters: the inflation rate over the last 6 months (which is still at historically high levels, 6.2% at the end of October 2022 in France and 10.6 % in Europe), and interbank rates in the euro zone, which are also on a marked upward slope (in an attempt to curb the inflation rate). In all probability, and barring a major surprise, the livret A should well cross the 3% mark on February 1, or even come close to 3.20%. If you have cash to invest, a little more patience, this should present an interesting prospect, better in any case than the euro funds, which are still penalized for the moment by their strong inertia (they generally need one or two years to react to a rise in bond interest rates). Even more attractive prospect for holders of a Livret d’Epargne Populaire (LEP): currently remunerated at 4.6%, it should reach 6% (or even 6.10%) on February 1st.
A new ELP to date
Even if borrowing has become much less advantageous than a year ago, for example, the rise in interest rates will mechanically have a favorable effect on the remuneration of Housing Savings Plans (PEL): the new plans currently open are capped at 1 % (and since 2016), but Bruno Le Maire, Minister of the Economy, has indicated that it will be doubled, to reach 2%. If you do not yet have a PEL, there may be an opportunity here. Since this contractual rate is fixed, it’s a safe bet that it will be a golden goose when interest rates turn down once more, in a few months or years. Some had understood this well, and still held PEL subscribed before 2011 at staggering rates, above 4.51%. Admittedly, the new PELs are taxed at 30% (flat tax), i.e. as much as euro funds…but these do not offer the same yield at present (estimated between 1.60 and 2 % by Facts & Figures for 2022), nor the same visibility.
The advantage of the PEL also consists in offering support guaranteed by the additional State: each support being capped (22,950€ for the booklet A, 7,700€ for the LEP, 61,200 € for the PEL, without forgetting 15,300 for the CEL, etc. .), you have every interest in multiplying them (depending on your eligibility conditions) to reach substantial ceilings (example: €107,150 for a combined PEL, LEP, booklet A and CEL). This too (for the PEL) in order to take a date, before a drop in interest rates envisaged from next year, if the recession knocks too hard on our doors. Unfortunately, that also seems likely…
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