If the economic indicators are green, those of household purchasing power are increasingly turning red. In question: thecurrent inflation which leads to a rise in consumer prices (2.9% between January 2021 and January 2022 according to INSEE). While the foodstuffs and the energy cost are soaring at the checkout, it was time for the State to revalue the regulated savings of households to prevent them from depreciating. This has been done since February 1, 2022.
Livret A at 1%
The formula for calculating the A booklet indeed takes into account the short-term monetary interest rate, but also the fluctuations of inflation over the last six months. Given the current situation, the Bank of France therefore recommended raising the rate of return for this very popular household product to 1%, whereas it had been maintained at its floor level of 0.5% since 2020. Good news for the 54.9 million French people who possess this regulated booklet, according to the figures of the Regulated Savings Observatory. In practice, however, do not expect miracles. With an average outstanding balance of €5,000 on this portfolio, this is equivalent to earning €50 in interest per year, compared to €25 previously.
LEP at 2.2%
If we think about it less, it should be noted that the other regulated booklets also benefit from this revaluation. Most often used in addition to the livret A and aligned with the latter’s rate of pay, the sustainable and solidarity development booklet (LDDS) also increases to 1%. Same thing again for the youth booklet, reserved for 12-25 year olds and capped at €1,600.
On the other hand, the formula for calculating the popular savings account (or LEP) boosts it further since it goes from 1% to 2.2%. Enough to give an extra boost to low-income households, since this regulated product is subject to an income ceiling in order to be opened. In France, 50% of citizens are eligible.