2023-09-21 06:00:04
Liquidity, security, exemption from tax and social security contributions: the Livret A and its little brother, the Livret de développement durable et solidaire (LDDS), remain essential for investing your savings without risk. The freezing of the rate at 3% until January 2025, announced in July by the Minister of the Economy, Bruno Le Maire, changes nothing. However, this is a disappointment for savers since the application of the calculation formula should have resulted in an increase in yield to 4.1%.
For the record, this is based on the half-yearly average of the inflation rate and interbank rates rounded to the nearest tenth of a point, with a minimum of 0.50%.
“You must first fill your regulated savings accounts up to the ceiling before looking at other short-term investments, the yield of which is lower,” indicates Valérie Bentz, head of heritage studies at the Financial Union of France (UFF). It is possible to pay up to 22,950 euros into a Livret A (open to all, adults and minors) and 12,000 euros into an LDDS (reserved for taxpayers). Beyond that, it is towards bank accounts that we must turn as a priority.
Like the Livret A, they are liquid (it is possible to pay in and withdraw money at any time) and are paid fortnightly. A payment made on October 2 will therefore only begin to accrue on October 15. But, unlike regulated savings whose rate is controlled by Bercy, the yield on bank accounts is set freely by the establishments, both based on their refinancing costs with the European Central Bank (ECB) but also on their competition.
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Their main advantage is the virtual absence of a ceiling since it is possible to invest up to several million euros there. These savings accounts yield an average of 0.71% in July 2023 according to the Banque de France, or 0.50% after tax. Network banks are particularly ungenerous, with rates often between 0.10% and 0.60% gross, very far from the 3% net of Livret A. Why such a difference?
Very competitive offers
Banks prefer that their customers let their money sit in their current account, uninterested, rather than see them transfer their excess cash to a savings account on which they will have to pay a return. They are therefore more aggressive with their term account offering, these products where savings are blocked for a more or less long period in return for remuneration which is in principle attractive.
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