can I open this “twin” of Livret A, which will soon yield more than 3%?

The rise in rates and the expected rebound of the Livret A on February 1, 2023 put the spotlight on forgotten or unknown savings accounts for part of the general public. Hence an unusual flood of questions from readers concerning regulated savings products, like this question about the Sustainable and Solidarity Development Booklet.

Hello J “. You are far from the only one interested in LDDS. The rate of the Sustainable and Solidarity Development Booklet will indeed match that of the Booklet A: its return, totally tax-free, is currently 2% net of all tax or contributions and will rise to more than 3% (probably 3.3%) in February, like the Livret A. This is enough to arouse a net revival of interest! But if they share the same remuneration, the LDDS is effectively a false twin of the Livret A…

Only access limit of the LDDS: to be over 18 years old

Beginning, effectively “J”, with LDDS eligibility : if the Livret A is open to everyone, adults or minors, the LDDS is reserved for those over 18 years old. More specifically, unlike Livret A, each tax household is limited to two LDDS, one for each adult member of the household if there are two adults. Subtlety, a minor domiciled in France for tax purposes can open an LDDS, but on one condition: he must be a full taxpayer, that is to say that he is not attached to the tax household of his parents and therefore has its own income.

On the other hand, “J”, you seem to be confusing the eligibility conditions for the LDDS and the People’s Savings Account (LEP): there is no income ceiling for accessing the LDDS. Only the LEP (currently paid 4.6% and soon more than 6%) is thus reserved for the most modest households, who pay little or no tax.

Aside from eligibility, the LDDS is also a false twin of the Livret A on the question of payment limitanother source of questions from our readers: you can deposit up to 22,950 euros on a Livret A, and “only” 12,000 euros on a sustainable development booklet. Important clarification: this ceiling of 12,000 euros is indeed the ceiling for payments. If your annual interest makes you exceed this limit, no worries.

“My booklet A and my LEP are at the maximum, where to place without risk? »

The LDDS, an unknown or misunderstood booklet?

The LDDS is not so “unknown” as that: the accumulated savings there climbed to 131 billion euros at the end of November 2022, for more than 5 billion euros in net inflows since the start of the year. At the end of 2021, 24.5 million French people had an LDDS! On average, French LDDS holders have around 5,350 euros on this “twin” Livret A savings account. The rate of remuneration having changed during the year 2022, it is logical not to have seen this savings being remunerated at 2 %, since its rate was still 0.5% at the start of 2022 before rising to 1% in February and then to 2% in the summer. One “medium” LDDS theoretically reported just over 73 euros in interest 2022 to its holder.

In fact, the LDDS is not an unknown placement since it even appears on the podium of the most widespread placements in France. But the characteristics of the LDDS – listed above – are probably unknown, in particular because its name seems to differentiate it from the Livret A…

Gold, is the LDDS really a “green” booklet? At a time when the Minister of the Economy Bruno Le Maire wants to create a “green” investment… That’s another question. Regarding the use of your savings, the money held on a Livret A and an LDDS “is used” to finance the same projects: primarily social housing, partly SMEs and more marginally the social and solidarity economy. The only real difference between the Livret A and the LDDS on this point: you can choose to give all or part of your annual interest to partner associations of your bank, in the form of donations.

Savings: how to make your LDDS truly supportive