LIVRET A 2022. The Livret A rate doubled on Monday August 1 to reach a historic level of 2%. Due to inflation, a further increase is expected in 2023. How does this booklet work and what does it bring in?
[Mis à jour le 3 août 2022 à 11h17] The passbook A rate has been multiplied by two, Monday, August 1, 2022. His compensation had been increased for the first time on February 1, 2022 to reach 1%. Its rate is now doubled to 2%, its highest level in ten years. This savings product is the favorite of the French, since 55.7 million of them have one. Despite the rise in its rate to 2%, the livret A remains below inflation, which is estimated by INSEE at 6.1% in July 2022 over twelve rolling months. This boost is good news for purchasing power, although it will not be enough to cope with rising prices.
A further increase in the Livret A rate should occur on February 1, 2023. At a press conference, the governor of the Banque de France, François Villeroy de Galhau, warned that the yield should “in all probability” increase further in 2023, on the occasion of the next rate revision. Indeed, the remuneration of the livret A depends on inflation and the interbank rates at which the banks exchange money in the short term. On average, the French place 5,800 euros on their livret A, according to the report 2021 published by the Regulated Savings Observatory. With a rate of 1%, this sum brought 58 euros per year to holders of a livret A, against 116 euros with the new rate at 2%. Here are the potential gains of the booklet A at 2%:
- savings of 1,000 euros: 20 euros interest;
- savings of 5,000 euros: 100 euros interest;
- savings of 10,000 euros: 200 euros interest;
- savings of 22,950 euros (ceiling): 459 euros of interests.
As a reminder, the Livret A is a remunerated savings account whose funds are available at any time. This account is free of charge and interest paid is exempt fromincome tax and social levies. The state sets the interest rate twice a year. All banks can offer the booklet A. A revaluation of the booklet A also allows other savings books to increase. the LDDSsustainable development and solidarity booklet (2%) and the LEP, popular savings booklet (4.6%) are also concerned.
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 young 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 rate for the Livret A doubles from August 1, 2022 going from 1% to 2%. An increase announced by the Minister of the Economy on the recommendation of the Governor of the Banque de France, François Villeroy de Galhau in mid-July. The primary objective of this increase is to offset the galloping inflation observed in recent months in France (6.1% in July over one year).
The Livret A rate is increased to 2%. In other words, when you benefit from a savings of €1,000you pocket 20 euro interest against only 10 euro interest with the former remuneration set at 1%. Find out the amount of your interest, depending on your savings:
- savings of 1,000 euros: 20 euro interest (10 euros of net gains compared to the previous rate)
- savings of 2,000 euros: 40 euro interest (20 euros of net gains compared to the previous rate)
- savings of 3,000 euros: 60 euro interest (30 euros of net gains compared to the previous rate)
- savings of 4,000 euros: 80 euro interest (40 euros of net gains compared to the previous rate)
- savings of 5,000 euros: 100 euro interest (50 euros of net gains compared to the previous rate)
- savings of 10,000 euros: 200 euro interest (100 euros of net gains compared to the previous rate)
- savings of 22,950 euros (ceiling): 459 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.