2023-08-15 13:38:40
The Livret A is the preferred investment of the French with more than 55 million savings accounts opened in 2022. Income from this savings product is subject to a ceiling of 22,950 euros, including interest. Many holders of this booklet have quickly reached this threshold. What happens if they want to make new deposits to this passbook?
In 2022, 55 million people, i.e. 81% of the French population, held a Livret A. A figure which places it in first position among the preferred savings products of the French, far ahead of life insurance, which only concerns 40.5% subscribers.
The Livret A has many advantages. It is accessible to all, since its opening requires no other condition than an initial deposit of 10 euros. Likewise, its income is accessible at any time and free of charge. However, it no longer authorizes payments beyond a certain threshold. Indeed, the Livret A is subject to an income ceiling of 22,950 euros, including interest. Thus, any payment made when this ceiling has already been reached will be automatically rejected and returned to its sender.
Can the Livret A continue to generate income beyond this ceiling?
If it is impossible to allocate new payments in the event of exceeding the authorized ceiling, the interest generated will continue to be added to the existing capital. The favorite booklet of the French can thus continue to generate income, even if the threshold of 22,950 euros is exceeded. As a reminder, the rate of remuneration of the Livret A has increased in 2022 from 1% to 2%. In 2023, it rose to 3% and will be fixed until January 1, 2025. The advantage is that the interest generated by this product is exempt from taxes and social security contributions.
No increase in the Livret A ceiling is currently planned. The last revaluation (50%) dates back to 2013. Other savings accounts will see their authorized income ceiling increase. The value of the People’s Savings Book (LEP), for example, should be increased to 10,000 euros soon. Thus, the LEP and the Sustainable and Solidarity Development Booklet (LDDS) are alternative solutions to the Livret A. The same individual subscribing to these different booklets can accumulate investments whose total amount can exceed 40,000 euros.
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