The remuneration of term accounts (CAT) is at its highest. Now is the time to take advantage of this investment before rates fall.
3% until January 2025 for Livret A and LDDS, interest rate books boosted to 5%, savers are taking full advantage of the rise in interest rates for several months. But this situation is not expected to last with the slowdown in inflation. After having made 10 consecutive increases in its interest rates, the European Central Bank should carry out a first reduction by the summer, according to recent declarations by its boss Christine Lagarde.
In this context, to continue to benefit from high rates for the months or even years to come, there is a product called term account. It is an investment that guarantees you an interest rate over a fixed period (most often 3 months to 5 years). According to the latest statistics from the Banque de France, the average remuneration of term accounts over a period of up to two years is 3.78%, a record for more than 10 years.
Fix your medium-term rate
Opening a term account today, when rates are at their highest, can clearly be an interesting option in order to lock in your remuneration. Savers who have already filled out their regulated savings products, such as the Livret A and the LDDS, and who are looking for a guaranteed investment are not mistaken.
The sums deposited in term accounts increased, for example, from 203 billion euros in January 2023 to 276 billion euros in December. A jump of 73 billion euros in just one year. For comparison, Livret A attracted more than 28 billion euros net in 2023 and life insurance 2.4 billion euros.
Super boost rate booklet or term account: the match between Livret A competitors
The remuneration of term accounts even overshadows life insurance, the economist Philippe Crevel recently explained to us. Some savers prefer to pay money into a term account and wait to see how the rates on euro funds will evolve in the coming months.
The remuneration of term accounts even overshadows life insurance
A sign of the success of term accounts, its outstanding balance has exceeded that of bank accounts offered by banks (232 billion euros), despite boosted rates which can still reach 5%, after a peak of 5.5% in January. Attractive remuneration but which can be reviewed at any time depending on competition and market conditions. With the end of the increase in rates decided by the European Central Bank, the remuneration of savings accounts risks falling.
A guaranteed investment
Like settlement books or bank books, term accounts have the advantage of being a risk-free investment, because your capital is guaranteed up to 100,000 euros. However, the term account has a double constraint: the originally fixed remuneration will be modified downward if you wish to withdraw your funds before the maturity date. And in this case, it can take up to 32 days to receive your money.
Do I risk losing my money by opening a term account in a bank?
However, it is possible to avoid penalties with a staggering strategy. To do this, simply place your savings in several term accounts with different durations. And thus recover your investment according to your needs.
Note that, unlike regulated passbooks, interest generated on term accounts, like that of bank passbooks, is subject to the flat tax of 30% (i.e. 12.8% income tax + 17.2% social security contributions). ).
Rates up to 4.8%!
If you are ready to invest part of your savings in a CAT, the best rate in effect for a 12-month investment is offered by Distingo Bank with a rate of 3.50%. Remuneration over one year higher than all bank accounts on the market. The highest one-year rate for bank savings accounts, including super boost rate savings accounts, is 3.34%. And it is also offered by Distingo Bank.
As for CATs, the rate can increase to 3.66% thanks to the Raisin platform by betting on a contract lasting 3 years. And if your investment horizon is longer, Monabanq offers a progressive term account with a rate that reaches 4.80% after 5 years.
Comparison of the best term accounts