The livret A has made record gains since January

2023-04-21 15:27:00

Livret A savings accounts grew by nearly 20 billion euros in the first quarter of 2023, unheard of since 2009.

By IM with AFP

The booklet A is making record gains at the start of 2023.
© Sebastien Muylaert / MAXPPP

Published on 04/21/2023 at 3:27 p.m.

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Lhe preferred investment of the French is experiencing historic success at the start of 2023. Over the first three months, the Livret A savings accounts have garnered nearly 20 billion euros, indicates the Caisse des dépôts (CDC). This is a first since 2009, encouraged by the increase in the rate to 3% on 1^is FEBRUARY. Last year, it took seven months to exceed this level of net receipts. The Livret A account benefited from a historic month of March, with deposits exceeding withdrawals by 4.17 billion euros.

The cumulative outstandings of the booklet A, which has some 55 million holders, and its cousin the sustainable and solidarity development booklet (LDDS), have been evolving for several months at record levels. They weighed on March 31 the sum never seen of 535.1 billion euros. These two products have benefited since last year from favorable arbitrage by savers, who see in them the best guaranteed return possible for their savings.

Livret A accounts mainly finance social housing

The rate of remuneration has in fact increased to 3% net since 1^is FEBRUARY. If it remains below inflation, it significantly exceeds the yields of euro life insurance funds, estimated on average at 2% by the ACPR, excluding tax. By way of comparison, only a little more than 2 billion euros were collected by life insurance in January and February, indicated on March 29 France Assureurs, which will communicate data stopped at the end of March, at the end of next week.

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The money deposited in the Livret A and LDDS booklets, capped respectively at 22,950 euros and 12,000 euros excluding capitalized interest, is guaranteed by the State, exempt from taxes and social security contributions. Managed jointly by the CDC and the banking networks, the livret A is mainly used to finance social housing, while the LDDS is dedicated to the social and solidarity economy as well as to energy savings in housing.

Livret A savings accounts and LDDS had already swelled by 40 billion euros in outstandings last year, driven by large deposits and interest paid at the end of the year.READ ALSOThe rise in the livret A must not slow down the growth of private investment