What to prevent the savings from melting. Invited this Friday of the TF1 news at 1 p.m., Bruno Le Maire announced an increase in the livret A rate, partly indexed to inflation. This must go to 1%, as of February 1, 2022. Since February 2020, its rate was 0.5%, following having been 0.75% between 2016 and 2020.
« The rate for the livret A will double on February 1, the same for the sustainable and inclusive development booklet, ”said the Minister of the Economy and Finance. The last revaluation of the Livret A, this low-risk regulated savings account exempt from tax and compulsory deductions, dates back to August 2011.
The Livret A rate is partly indexed to the average inflation rate for the last six months. The latter has increased, it is now around 2%. But it also depends on the interest rates in the money markets and the action of the government, which can change it twice a year.
54.9 million individuals concerned
Consumer prices rose 2.8% in December, the same increase as in November, INSEE said on Friday. Over the year 2021, inflation was 1.6%, thus justifying the recovery of the interest rate of the Livret A announced in line with the recommendations of the Bank of France, published on Friday. « I am convinced that by the end of 2022 inflation will decrease. We are at the peak, ”the minister also mentioned.
Many French people have accumulated money during the Covid-19 crisis, to protect themselves from its vagaries. Among the 120 billion euros saved by the French in 2020, the livret A captured a large part, recording a net inflow of 26.1 billion euros, a record. 54.9 million individuals have it in France.
Aimed at lower incomes and indexed directly to inflation, the popular savings account increases to 2.2% interest rate, in accordance with “the recommendations of the Governor of the Bank of France”, indicated Bruno Le Maire. It was 1% so far. 40% of French households are eligible for it.
The Minister of the Economy and Finance encouraged the opening of an account of this nature, “which better protects once morest inflation”. The general directorate of public finances will send an email to eligible French people – who earn less than € 2,000 per month – to facilitate the procedures. 15 million French people might be affected by the popular savings account, but only 7 actually benefit from it.
