2023-12-14 16:24:00
BOOKLET A. The preferred savings account of the French, the Livret A will make it possible, in 2024, to generate some interest, but it is not the most interesting investment. Simply the most effective for everyday use.
Summary
This is the French people’s favorite savings account. Its security and permanent availability of funds have made it a benchmark product for many years. However, Livret A is not known to be the most profitable. This is an account allowing you to put a little money aside in anticipation of hard times, gifts or vacations, but not an investment to earn money. 56 million people use these “everyday” savings and can already anticipate the interest they will be able to receive at the end of 2024, since the rate of return is already known.
In 2024, the Livret A rate will still be 3% until 2025. The government has decided to block it and ignore inflation, the usual variable for adjusting the remuneration of this Livret A. saving. It is thus maintained at a level that savers had not experienced in 2007-2008.
With a rate set at 3% for the whole year, here is the interest you can expect to receive if, on January 1st, you had savings in this savings account…
1 000 euros : 30€ interest 2,000 euros: 60€ interest 3,000 euros: 90€ interest 5,000 euros: 150€ interest 10,000 euros: 300€ interest 22,950 (ceiling): €688.50 interest
The calculation of interest from booklet A occurs the 1st and 16th of each month, therefore every fortnight. Clearly, if you deposit money into your Livret A between the 1st and 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 month following so that the date of the value is taken into account in the calculation of interest. Have you made a withdrawal? Interest is calculated for 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 booklet by its rate and divide it by 24 (number of fortnights in the year). But be careful, this calculation only has a theoretical value. To calculate your return, you must take into account all the movements made in the booklet.
What is the ceiling for Livret A in 2024?
The ceiling for Livret A is set at 22 950 euros, for individuals. However, interest payments may exceed this limit. As an indication, associations benefit from a higher ceiling, at 76,500 euros. Any person, whether minor or adult, can open an A booklet. 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 prohibited to have two regulated booklets of the same type (A booklet and Blue booklet) for the same person.
However, it is entirely possible to combine an A booklet with a Sustainable Development Booklet (LDD) or a youth booklet. Furthermore, it is possible to accumulate regulated booklets within the same tax household. To close a Livret A, simply contact your banker, by mail or by visiting a branch. You will need to specify the reference of your Livret A and provide the details of your current account, LDD, CEL… or other account to which you wish to transfer the funds. If closed during the year, capitalized interest is credited to the account on the day it is closed.
Any person, adult or minor, can have an A booklet. The banking establishment in which you wish to subscribe to the A booklet must contact the tax authorities to verify that you only have one. The establishment cannot open a booklet for you until it has this answer.
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 Postal Bank. Depending on the banking establishments, various means of payment are accepted to make this payment, check, cash or transfer. Most banks now offer the opening of an A booklet 100% online, or in a branch if the customer wishes.
Previously reserved for customers of Caisse d’Épargne, Banque Postale and Crédit Mutuel (under the name of livret bleu), 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 since January 1, 2012. This transfer was possible from January 1, 2009 to December 31, 2011. From now on, it is necessary to close your Livret 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 ansit is automatically transferred to the Deposit fund who keeps it, she 20 ans. You can search for free if you are the holder of an A booklet that you have forgotten, and thus make a request for the remaining amount to be returned to you.
So what is the role of a Livret A? The latter can be compared to a precautionary savings, in addition to his current account. It is advisable to place two to three months’ salary in your A savings account. But other solutions exist for saving, some of which have seen their rate greatly increased, such as LEP. Subject to a resource condition, 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 the height of 4,6%, will also be reevaluated due to galloping inflation. A big boost for the LEP which should reach a rate of 6,1% ! The LEP ceilinghe is fixed at 7,700 euros, excluding capitalized interest. Its extremely attractive rate could well make it a real alternative to the Livret A in the eyes of savers. Are you eligible for the LEP? In France, 15 million people can benefit from it. Remember that the Livret A, like the LEP, remains a tax-free savings product. The 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 help your money grow? Consult our file to find out the alternatives to booklet A!
This is one of the advantages of this regulated savings product. The interests of Livret A are exempt from income tax. They are also not subject to the social contributions. The Livret A also allows you to make transfers and withdrawals without limit in number, and without fees. Finally, it allows the saver to have capital available immediately.
To close your booklet A, two options are available to you. Send a letter to your bank, or go directly to a branch. In all cases, you must specify the references of the booklet A and the account number where the sums remaining in 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 request an acknowledgment of receipt at the counter. If the A booklet is closed during the year, interest on the period since the beginning of the year is credited on the day the account is closed.
The funds present in the A savings accounts make it possible to finance the creation of social housing. The Caisse des Dépôts et Consignations uses the Livret A resource to lend money to social housing organizations at rates taking into account the current Livret A rate, plus a preferential additional rate. If the Livret A rate had increased, the organizations would have been penalized because the costs of creating these housing units would jump by two billion euros, judged, before the government’s announcement, the Director General of the Caisse des Dépôts Éric Lombard on BFM TV
#Livret #interest #receive