LIVRET A. The rate of return on the preferred savings product of the French should rise well in the summer of 2023, but less quickly than expected. A blow for savers.
[Mis à jour le 11 mai 2023 à 08h05] The passbook A rate will once again increase in 2023. Indeed, the mechanical increase in the preferred savings product of the French will apply from the next august 1st. According to the formula for calculating the Livret A account taking into account the level of inflation and the average interbank rate, the rate should rise by 3% to 4.3%. But at the same time, the banks are beginning to worry about these successive revaluations. The latter have already undertaken a vast lobbying campaign to prevent households from depositing even more money on this booklet which finds colors.
For his part, the Minister of Economy Bruno the Mayor plans to continue its support for French households, as indicated on Wednesday May 3: “my first responsibility is to protect the savings of the French people. If we have to continue to increase the remuneration of the livret A, I will follow the governor’s recommendation. So, will the rate really increase to 4.3%? In fact, a consensus could emerge, as revealed Philippe CrevelDirector of Cercle de l’Epargne in his “Eco Letter” of May 6: “A rate around 3.5% is undoubtedly probable”. As a reminder, with the previous increase in the rate from 2% to 3% At February 1stbooklet A recorded its best first trimester since 2009. This explains the reluctance of banking establishments in the face of this potential new increase. Verdict mid July 2023.
The ceiling of the Livret A is set at €22,950, for individuals. However, interest payments may exceed this limit. As an indication, associations benefit from a higher ceiling, at 76,500 euros. Anyone, whether minor or adult, can open a booklet A. On the other handit is not possible to hold several in different establishments. To open a livret A, you must sign a written contract with your bank, detailing the authorized operations (transfer, payment, withdrawal, etc.). Since 2012, it is not possible to transfer a livret A from one bank to another. You must first close the first booklet, then open another booklet in a bank. It is forbidden to combine two regulated booklets of the same type (Livret A and Livret Bleu) for the same person.
On the other hand, it is quite possible to combine a booklet A with a Sustainable Development Booklet (LDD) or a youth booklet. In addition, it is possible to combine regulated booklets within the same tax household. To close a livret A, simply contact your banker, by mail or by going to an agency. You will need to specify the reference of your livret A and fill in the details of your current account, LDD, CEL… or other account to which you wish to transfer the funds. In the event of closure during the year, capitalized interest is credited to the account on the day it is closed.
The Livret A rate will increase from 2 to 3% on February 1, 2023, as announced in mid-January by the Minister of the Economy Bruno Le Maire. As a reminder, the rate had doubled on August 1, 2022, going from 1% to 2%. The primary objective of this increase is to offset the galloping inflation observed in recent months in France (nearly 6% over one year in 2022).
The passbook A rate has been increased to 2% in 202 and 3% on February 1, 2023. In other words, when you benefit from a savings of €1,000you pocket 30 euro interest against only 20 euro interest with the old remuneration set at 2%. Find out the amount of your interest, depending on your savings:
- savings of 1,000 euros: 30 euro interest (10 euros of net gains compared to the previous rate)
- savings of 2,000 euros: 60 euro interest (20 euros of net gains compared to the previous rate)
- savings of 3,000 euros: 90 euro interest (30 euros of net gains compared to the previous rate)
- savings of 4,000 euros: 120 euro interest (40 euros of net gains compared to the previous rate)
- savings of 5,000 euros: 150 euro interest (50 euros of net gains compared to the previous rate)
- savings of 10,000 euros: 300 euro interest (100 euros of net gains compared to the previous rate)
- savings of 22,950 euros (ceiling): 688 euros in interest (229.50 euros of net gains compared to the previous rate).
The calculation of the interests of the livret A occurs the 1er and 16 of each month, so every fortnight. Clearly, if you deposit money in your savings account A between 1er and the 15th of the month, the calculation will be effective from the 16th. If you make a deposit between the 17th and the end of the month, you will have to wait until the following month for the date of the value to be taken into account in the calculation of interest . Did you make a withdrawal? Interest is calculated over the current period.
The total interest is added to the capital at the end of the year. When you want to calculate your interest, you should multiply the balance of your savings account by your rate and divide it by 24 (number of fortnights in the year). But beware, this calculation has only a theoretical value. To calculate your return, you must take into account all the movements made on the booklet.
Any person, major or minor, can have a livret A. The banking establishment in which you wish to subscribe to the livret A must question the tax authorities to verify that you only have one. The property cannot open a booklet for you until they have this response.
Then, you must provide your establishment with an identity document and proof of address less than three months old. For minors, remember to bring a copy of the family record book or a birth certificate. The signature of one of the parents will also be required.
Good to know, a minimum payment of 10 euros is required when opening the account, an amount which drops to 1.50 euros at the Banque Postale. Depending on the banking institutions, various means of payment are accepted to make this payment, check, cash or transfer. Most banks now offer the opening of a 100% online savings account, or in an agency if the customer wishes.
Previously reserved for customers of Caisse d’Épargne, Banque Postale and Crédit Mutuel (under the name of livret bleu), the livret A can be offered by all banksincluding online banks, since 2009.
It is not possible to transfer a livret A from one bank to another from 1er January 2012. This transfer was possible from 1er January 2009 to December 31, 2011. From now on, it is necessary to close your savings account A in the old bank before opening a new one in another banking establishment. If you have forgotten the existence of a livret A and the account has remained inactive for 10 yearsit is automatically transferred to the Deposit Fund who keeps it, she, 20 years. You have the possibility of searching for free if you are the holder of a booklet A that you have forgotten, and thus, make a request for the remaining amount to be returned to you.
What is the role of a booklet A? The latter may resemble a precautionary savings, in addition to his current account. It is advisable to put two to three months’ salary on your savings account. But there are other solutions for saving, some of which have seen their rates greatly increased, such as the THE P. Subject to a means test, the LEP is a guaranteed investment reserved for people domiciled in France and whose resources are limited (20,296 euros of reference tax income for a single person, 31,135 euros for a couple). Its rate, located at 4.6%, will also be revalued due to runaway inflation. A huge boost for LEP, which should reach a rate of 6.1% ! THE LEP ceilingit is fixed at 7,700 euros, excluding capitalized interest. Its extremely attractive rate could well make it a real alternative to the Livret A account in the eyes of savers. Are you eligible for LEP? In France, 15 million people can benefit from it. Remember that the livret A, like the LEP, remains a tax-free savings product. Interest earned by savers is not subject to income tax or social security contributions.
Do you have a little extra nest egg and are you looking to study savings and investment products that would make your money grow? Consult our file to know the alternatives to the booklet A!
This is one of the advantages of this regulated savings product. The interests of the livret A are exempt from income tax. They are also not subject to social contributions. The Livret A also allows you to make transfers and withdrawals without a limit on the number, and free of charge. Finally, it allows the saver to have capital available immediately.
To close your booklet A, two possibilities are available to you. Send a letter to your bank, or go directly to an agency. In all cases, you must specify the references of the booklet A and the account number where the sums remaining on the booklet must be deposited. Your bank must close your account within 15 working days. To be able to prove the date of receipt of the request by the bank, you must send the letter by registered mail or ask for an acknowledgment of receipt at the counter. If the livret A is closed during the year, interest over the period since the beginning of the year is credited on the day the account is closed.