We often talk about the Livret A and the Livret d’Epargne Populaire (LEP) as tax-free savings products. And yet they are not the only ones. There is the LDDS, but also the Youth Booklet. The latter, however, offers the same tax advantages and remuneration of up to 4% in certain banks.
The youth savings account is a savings account accessible to young people aged 12 to 25 with a ceiling of 1600 euros. Although its ceiling is much lower than that of the Livret A (22,950 euros), it represents a good additional savings.
And for good reason, its rate set by banking establishments cannot be lower than that of the Livret A. It will therefore remain minimum 3% until January 31, 2025. In fact, the government decided to freeze the Livret A rate this summer for the next 18 months.
A yield of up to 4%
If most banks have updated the rate of their youth savings account to place it at 3%, some establishments have pushed their rate up to 4%. So who offers a more competitive youth booklet than Livret A?
The best youth booklets reach today 4% yield. This is the case with the youth booklet CIC since February 1 and that of the bank LCL since August 1st.
The Savings Bank and Crdit Mutuel offer rates ranging from 3 to 4% depending on the regional banks.
Chalus Bank has been offering, since March 1, a rate of 3.50%, just like Macif and Credit Agricole and his young libretto Mozaic. The Banque Populaire savings account displays rates between 3 and 3.50% depending on the establishment.
As a reminder, the interest on the youth savings account is completely exempt from taxes and social security contributions. As with the Livret A, interest on the youth savings account is calculated every two weeks. A withdrawal card can also be attached to it.
Bank card for teenagers: where to find a free one?
According to the annual report of the Banque de France published in July, the total outstanding amount on the youth savings account reached 5 billion euros at the end of 2022.