BOOKLET A. The Minister of the Economy, Bruno Le Maire, is the guest of the 1 p.m. news on TF1 this Friday. On this occasion, he should reveal the rise in the rate of the Livret A, the preferred savings product of the French.
[Mis à jour le 14 janvier 2022 à 09h25] It is time for the outcome for savers. Guest of the 1 p.m. news on TF1 this Friday, January 14, Bruno Le Maire will unveil the new passbook A rate. The favorite savings product of the French should go from 0.5% at 0.8% to January 1, 2022 due to the increase in inflation, observed in 2.8% last December over one year. It has been almost ten years since the beneficiaries of the booklet A had not observed any revaluation. As a reminder, nearly 55 million French people hold a booklet A and will benefit from an increase in their interest. If this increase is confirmed, each holder of a livret A should see its interest increase by €16.50 per year, for an average outstanding amount of €5,500. Or an increase in interest of 27.50 at 44 euros. Calculated from a calculation taking into account the level of inflation and interest rates, the Livret A rate will remain, whatever happens, well below that of inflation.
With this increase, the livret A will therefore remain a precautionary investment but not the best way to earn interest from your savings. For this, the popular savings account (LEP) is preferred for eligible people. 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 1%, will also be revalued due to runaway inflation. A hell of a boost coop for the LEP which should reach a rate of 2.2%! the LEP ceiling, it 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 toincome tax, or social security contributions. To find out the amount of your interest after the increase in the rate of the livret A to 0.8%, find our complete file below and all the answers to your questions, as well as the benefits to be drawn from this increase in the rate of the booklet A.
In all likelihood, the passbook A rate should go from 0.5% at 0.8% to February 1, 2022. A significant increase for the favorite savings product of the French, frozen since February 2020 at 0.5%. No major revolution to be expected, but the beneficiaries should still see their interests increase slightly. let’s remember that €1,000 remunerated on a booklet A to 0.5% relate 5 euro interest. If you have a larger sum in your savings account, namely 10,000 euros, you will collect 50 euros in interest at the end of the year. With the transition to 0.8%, a savings of €1,000 on a Livret A would yield 8 euros per year to the beneficiary, i.e. a net gain of 3 euros.
Discover your interests with the passage of the rate of the A booklet at 0.8% :
- Savings of €1,000 : 8 euros interest (3 euros of net earnings)
- Savings of €2,000 : 16 euros interest (6 euros of net earnings)
- Savings of €3,000 : 24 euros interest (9 euros of net earnings)
- Savings of €4,000 : 32 euros interest (12 euros of net earnings)
- Savings of €5,000 : 40 euro interest (15 euros of net earnings)
- Savings of €10,000 : 80 euro interest (30 euros of net earnings)
- Savings of €22,950 (ceiling) : €183.60 interest (68.85 euros net earnings)
Since February 1, 2020, the Livret A rate is frozen at 0.5%. A historically low rate, and a negative real return for the Livret A, below theinflation which is at the height of 2.8%. As a reminder, the rate is set by the Ministry of Economy and Finance on the recommendation of the Banque de France, according to a mathematical calculation taking into account the level of inflation and interest rates. Very popular with the French, remember that the Livret A account has a significant advantage: its interest is not subject to income tax and social contributions.
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 A. Do you have a little extra savings 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!
The ceiling of the Livret A is set at €22,950, for individuals. Remember that the payment of interest may well exceed this limit. As an indication, associations benefit from a much higher ceiling, at 76,500 euros. Anyone, whether minor or adult, can open a booklet A. On the other hand, it 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.). 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 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 therefore 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.
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 security 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.