2024-03-18 08:47:32
Money placed in a current account does not receive any remuneration from the bank. On the other hand, it costs its holder management fees. Here are two other good reasons to empty your current account, before March 31!
It is known that in France, banking establishments do not reserve any remuneration for investments made on current accounts. This is a regulation that has been in place for years, born from an agreement between the government and the banks which, in return, had undertaken to maintain free checkbooks.
If, until now, this agreement has been generally accepted, today, specialists do not hesitate to talk about its “expiration”in view of the now significantly reduced use of checks, while at the same time many banks in other euro zone countries remunerate current account investments.
Whatever the rate, the remuneration is well guaranteed. Which is not yet the case in France, where a current account, in addition to not generating any added value, sometimes costs very expensive management fees.
Interest rates now attractive on savings accounts
To benefit from your investment, it is therefore recommended to keep in your current account only what is strictly necessary for current expenses and transfer the savings to a Savings Account which receives remuneration. In addition, the current period is favorable with interest rates returning to their real values with the fall in the inflation rate.
Indeed, the Livret A rate, set at 3% until 2025, has finally exceeded that of inflation, which has now fallen below the 2.9% mark over one year last February, according to estimates from the INSEE. Never seen before since 2021!
You should know that the comparison of the interest rate and the inflation rate reveals a positive balance of 0.1% on the interest rate, synonymous with a real positive return on the Livret A which is no longer absorbed by inflation. The return is certainly minimal, but it is undoubtedly better than nothing and much better than keeping your money in an expensive current account.
Maximize remuneration by respecting the “two fortnights” rule
Every day lost is equivalent to a few pennies lost. This is why it is advisable to quickly transfer your money into a Savings Account, especially since the operation is done instantly and without fees. However, you will need to take into account “the two-week rule” (from the 1st to the 15th and from the 16th to the 30th/31st of the month) which is taken into account at the banks.
If, for example, you transfer your money to a Savings Account on April 2, your savings will only start to receive interest at the start of the second half of the month. This is why you must transfer your money from the current account to a Savings Account no later than March 31 to start benefiting from interest from April 1.
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