Bank accounts sold by traditional banks most often have very low rates compared to what online banks or even brokers can offer. On the other hand, they are more aggressive on the remuneration of term deposits. Explanations.
0.87%. Here is the average remuneration of bank accounts in February according to the latest statistics from the Banque de France published on April 5. A level which has increased significantly over the year due to the multiple rate increases carried out by the European Central Bank (ECB) to counter high inflation. In February 2023, the average remuneration was 0.50%.
But the current average hides profound disparities. Indeed, according to our latest monthly statement on the bank book market, several online banks and brokers offer bank book books at much higher rates.
High rates among online players
This is the case of BforBank with a boost rate over 4 months of 5.5% gross. An attractive level which even allows you to earn more interest over this period than on a Livret A 3% net of taxes. Then, this is no longer the case since the rate of the BforBank savings account passes a base rate of 2.10%, or an annual rate of 3.25%.
Comparison of offers on the best bank accounts
Another example with the Hello + booklet, from Hello bank!, with a boost rate over 12 months of 3.50% or the Distingo Booklet which offers 3% gross. After application of the 30% flat tax on interest, the remuneration is lower than that of the Livret A and the LDDS, but the bank books allow you to invest your money without risk with availability of funds at any time.
Supports which can be interesting for a short-medium term investment, once the regulated savings accounts are at the ceiling. And unlike the latter whose remuneration is set by the State, the rates of bank accounts are set by the establishments according to their commercial strategies.
Rates that border on level 0!
And these are therefore very variable. Indeed, traditional banks, unlike online players, specialized banks and brokers, do not fight to offer attractive rates. Large network banks often offer 0.50% gross on their main bank account. the image of La Banque Postale, SG, CIC, Crdit Agricole or even LCL which displays 0.55%, 0.75% at the CCF. The ordinary Crédit Mutuel Livret can reach 1% depending on the federation.
Bank | Booklet name | Current rate for a balance of… | Current offer | ||
---|---|---|---|---|---|
5,000 | 20,000 | 100,000 | |||
Bank book account | variable | variable | variable | – | |
100% Region booklet | variable | variable | variable | – | |
Local Investment Booklet | 0.20% | 0.20% | 0.15% | – | |
Savings account | 0.10% | 0.10% | 0.10% | – | |
Booklet B | variable | variable | variable | – | |
Regional Booklet | 0.15% | 0.15% | 0.15% | – | |
Savings account | 0.75% | 0.75% | 0.75% | – | |
CCF savings account | 3.00% | 3.00% | 3.00% | – | |
CIC Construction Booklet | 0.50% | 0.50% | 0.50% | – | |
Booklet More | 0.50% | 0.50% | 0.50% | – | |
Savings account | 0.50% | 0.50% | 0.50% | – | |
CSL Agri Project | 0.50% | 0.50% | 0.50% | – | |
Corsican savings account | 0.60% | 0.60% | – | – | |
Life here booklet | 3.00% | – | – | – | |
Ordinary booklet | variable | variable | variable | – | |
Savings account | 0.50% | 0.50% | 0.50% | – | |
Savings account | 0.55% | 0.55% | 0.55% | – | |
Savings account | 0.50% | 0.50% | 0.50% | – | |
Savings book Plus | 0.40% | 0.40% | 0.40% | – |
For the Banque Populaire bank book account, this is the big difference: from 0.05% to 1.05% gross, depending on the region. Conversely, the Caisses d’Epargne have jointly decided on an almost zero rate: between 0.05% and 0.10% for Livret B according to the regional fund. Finally, the BNP Paribas Savings Account pays only 0.10% gross. But why such a low rate?
We believe that customers have, depending on their objectives, BNP Paribas offers that are better suited to the current rate environment.
Our customers have the opportunity to invest their precautionary savings in very good conditions yield currently on the Livret A and the LDDS (nearly 35,000 euros for a single person and 70,000 euros for a couple). For customers eligible for the LEP, this ceiling even rises to 45,000 euros for a single person and 90,000 euros for a couple. In most cases this is well above 6 months of income, a criterion usually used for a good level of precautionary savings. Beyond these amounts, we believe that customers have, depending on their objectives, BNP Paribas offers that are better suited to the current rate environment. For short-term projects with a well-defined horizon, our range of DAT and for medium-long-term projects our life insurance solutions, explains the communication from BNP Paribas in a long email addressed to MoneyVox.
Aggressive rates for term deposits
Indeed, BNP Paribas currently offers very high rates for term deposits with, for example, 3.70% over one month or 4% over six months. But unlike bank accounts which are often accessible from 10 euros, BNP Paribas DATs require a minimum payment of 50,000 euros.
But why are traditional banks so little aggressive about the remuneration of their in-house savings accounts?
Large network banks naturally collect deposits from their customers. They have every interest in paying them as little as possible to lend them at the highest possible rate. in order to maximize their margin. On the side of specialized banks which have neither the need nor the desire to maintain an expensive branch network, they must find another way to collect deposits, which have been necessary since the financial crisis of 2008 in order to finance their activities. For this, in order to collect deposits, they are ready to offer more attractive interest rates on their bank books than traditional establishments, analyzes Marc Tempelman, the co-founder of the fintech Cashbee which notably offers a bank book with a rate boost 4% over 2 months.
The banks did not want to chase the Livret A rate. They therefore prefer to ignore bank books
The banks did not want to chase the Livret A rate because offering more than 3% would have been costly for them. They therefore prefer to ignore bank accounts, adds economist Philippe Crevel.
For Marc Tempelman, no traditional bank has any interest in launching into a rate war on bank books: On the one hand, the cost for it will be very high because it would be necessary to remunerate the entire stock of deposits on bank books at the new rate, higher. On the other hand, it is very likely that if a network bank increases its rates too much, its competitors will respond in the crowd. Its competitive advantage would therefore be very limited in time.
But the opposite, the big banks have every interest in being more offensive on futures contracts. The preferential rate remuneration only applies to new deposits and not to all existing stock. And these term deposits can be personalized and offered to certain clients, without giving them much visibility, explains Marc Tempelman.
Term account: comparison of the best offers
Boosted rates in certain local funds
Note that some local mutual network banks sometimes offer bank accounts with boosted rates, but under very restrictive conditions. This is the case, for example, for the Vitapulse savings account at Banque Populaire Auvergne Rhne Alpes. Until May 15, remuneration is increased by 3.5%, i.e. a gross annual nominal rate of 4.5%, for cumulative payments greater than or equal to 50 euros, made from March 1 to April 30, and in the limit of 200,000 euros of payment over this period.
The Caisse d’Epargne Cte d’Azur Grand Prix Booklet displays a rate of 4% gross until June 15 for a payment of between 10,000 and 100,000 euros between February 15 and June 1. Note that then, the base rate applies: 0.05%.