Livret A earns 3%, take advantage of it! The return on the regulated investment preferred by the French is guaranteed until January 31, 2025, the date of its next review. “It should then drop to 2.75% or even 2.5%, given the decline in inflation in recent months,” predicts Maxime Chipoy, the president of MoneyVox. Remuneration for the A booklet and the sustainable and solidarity development booklet (LDDS), both exempt from taxes and social security contributions, depends on a calculation formula based on inflation and short-term interest rates. But Bruno Le Maire, then Minister of the Economy and Finance, announced in August 2023 the freezing of the yield at 3% until the beginning of 2025.
A status quo that was unfavorable to savers at the time – they should have been better paid – but which protects them today. Because other risk-free investments are already paying the price for the reduction in key rates initiated by the European Central Bank (ECB) in recent months. The institution’s deposit rate currently stands at 3.25%, compared to 4% at the start of 2024 and it should gradually move towards 2.5% over the course of 2025. The remuneration of tax-advantaged savings accounts, term accounts and money market funds are therefore likely to continue to crumble, as has already been the case for several months.
A few more promotions on bank accounts
“Whatever the level of interest rates, it is recommended to invest the equivalent of three to six months of salary in risk-free and liquid investments,” specifies Marc Tempelman, co-founder of Cashbee. Starting with the Livret A and the LDDS, today unbeatable, or the Popular Savings Booklet, which provides 4% to eligible households subject to means testing. “Its rate should drop to 3.25% on February 1, or 3.5% if the government decides to make a move in favor of low-income households” notes Philippe Crevel, director of the Cercle de l’Epargne.
Beyond the regulated savings ceilings – 22,950 euros for the A savings account, 12,000 euros for the LDDS – we must look at the rare promotional offers still in force on bank accounts, reserved for new customers. Cashbee, Distingo Bank and Renault Bank offer 4%, over two or three months. Furthermore, some platforms reward their loyal customers with bonus rates for new payments for those already in possession of a savings account. The standard rates, once the promotional period has passed, reach 2.75% at Renault Bank and 2.5% elsewhere – BoursoBank, Cashbee, Distingo, Placement-direct, Ramify. For its part, Hello Bank guarantees 2.25% for twelve months, up to 50,000 euros.
Money market funds are sold on a daily basis
Another solution, term accounts, allow you to obtain a small additional return. The saver commits to a fixed period and knows in advance the rate which will be applied to him over the entire period of immobilization of his money. He will therefore not be affected by future pay cuts. Distingo Bank offers 2.9% over ten months and 3% over one year, compared to 2.5% for its savings account – excluding promotions. BoursoBank announces 2.75% over twelve months compared to 2.5% for its booklet. In the event of exit before the term, the remuneration is reduced because penalties apply: you should therefore only invest in a term account sums which you are certain you will not need. “The rates on term accounts will fall, that’s the direction of the story. It is therefore still a good time to subscribe in order to protect the yield,” recalls Maxime Chipoy.
Finally, money market funds are also a good solution for investing your savings without risk. They returned 3.98% on average over the last twelve months according to Morningstar. Their performance is linked to that of the Ester, the euro zone interbank rate, itself indexed to the ECB deposit rate. It should gradually move towards 2.5% over the course of next year, dragging with it the performance of money market funds. The main advantage of these products is that it is possible to subscribe to or sell them on a day-to-day basis, while the booklets, regulated or not, are paid for every fortnight.