Do you have 1000euros to invest? Here is an overview of the most attractive investments for your savings in 2023… And those that are best avoided.
3 years ago, the Livret A rate was hovering around 0.5%. And all the signals were green on the real estate market. But since then, the tide has turned. Today, the rates of the European Central Bank (ECB) are moving to their highest since 2001. And the whole landscape of savings in France has changed.
How much will I get
my booklet A in 2023?
I had
as of January 1, 2023
My booklet A…
–
the end of the year 2023*
*For a stable amount saved on your Livret A
throughout 2023
Concretely? Some investments are taking full advantage of the rise in interest rates. The super booklets, previously neglected by the French, are regaining popularity, indicates for example Marc Tempelman, co-founder of the fintech Cashbee. Others, on the other hand, are beginning to nose dive, the image of real estate crowdfunding.
The difficulty right now is the uncertainty. The rise in interest rates is weighing on real estate, which is an asset class appreciated by the French. And geopolitical tensions are increasing, with the stalemate of the war in Ukraine, and the hardening of relations between China and the United States, notes Marc Tempelman.
So how to invest your savings in 2023? The answer to this question depends on several factors. know: your appetite for risk, your investment horizon and your knowledge of finance. However, a few investments stand out.
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1. The popular savings account
If you want to invest your 1000 euros without taking any risk, several options are available to you. start with the popular savings account (LEP). Currently, there are few (if any) investments that can compete with this booklet.
And for good reason: liquid, risk-free and tax-exempt, LEP ticks all the boxes. Not to mention its excellent performance. The latter is an index of average inflation over the past 6 months. And since February 1, 2023, it has reached 6.1% and will drop to 6% on August 1st.
Result? LEP’s popularity exploded. The number of subscribers thus rose from 8.3million end of December 2022 9.7million in May 2023. As for outstandings, they jumped by more than 30% in 12 months to reach 55.1 billion euros in March.
Only downside: not everyone has access to LEP. To be eligible for this savings product, your reference tax income (RFR) must not exceed 21393 euros.
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2. Booklet A
With the rise in the key rates of the ECB, other savings accounts have also become attractive again in 2023. Among these, there is of course the Livret A, whose remuneration has been multiply by 6 in just 1 year, going from 0.5 3%. A rate that will not change until January 2025 as announced on Friday by Bruno Le Maire.
For the past few months, the favorite savings account of the French has been unanimous. As proof: between January and April 2023, he has already collected more than 22 billion euros. It is 57% more than over the same period last year.
3. Great booklets
And what about super booklets? The advantage is that the funds deposited in these savings accounts are available instantly. And your capital is guaranteed up to 100000 eurossays Marc Tempelman.
After being neglected for a long time by savers, super savings accounts are now benefiting from the rise in rates. According to figures released by the Banque de France, their average salary has risen by 400% over the past 12 months.
And some players offer promotional offers to attract new customers. This is for example the case of Cashbee, which offers a boost rate 4% during 3 months. After this period, the rate served returns to 2.5%.
That said, unlike those of LEP and Livret A, the interests of your super savings accounts are not tax exempt. Your winnings will be subject to flat tax. Either 17.2% social contributions and 12.8% taxes, recalls Marc Tempelman.
Booklet: the comparison of offers on the best bank books
4. Term accounts
Another option to invest 1000 euros in 2023: term accounts (CAT). This forgotten investment allows you to invest your cash for a period most often comprised between 3 months and 5 yearswith an interest rate fixed at the time of subscription.
The proposed remuneration increases according to the duration during which your funds will remain immobilized. The Raisin platform, for example, offers rates ranging from 2% over 6 months 3.50% over 5 years.
Another advantage: the rate of your term account is fixed at a given time. And this for several years. It may therefore be interesting to open a CAT today, as long as the rates are high, in order to freeze your rate for the next few years.
This investment is guaranteed risk-free. However, it comes with a liquidity constraint. Technically, you can release your funds in advance if necessary. But your returns will be penalized.
Term account: operation and comparison
5. The PEA
And the stock market, in all a? In the first half of 2023, equity markets rose sharply. The CAC40, the flagship index of the Paris marketplace, rose by 14%. The increase is even more marked (+31%) for the Nasdaq, which brings together American technology stocks, driven by the enthusiasm of investors around artificial intelligence.
After such increases, of course, we are entitled to wonder if this is the best time to enter the markets, says Marc Tempelman. But as long as the investment is for the very long term, there really isn’t a bad time to invest in the stock market.
If so, be sure to diversify your portfolio. It’s possible, even if you only have 1000 euros to invest, thanks to ETFs, or index funds. Choose a diversified index, such as the MSCI World, or thematic funds, if you want to bet on the development of certain sectors, such as tech or the climate, for example, advises Marc Tempelman.
You can place your securities in an equity savings plan (PEA) to benefit from reduced taxation. Your earnings will indeed be exempt from tax (but not social security contributions) if you do not withdraw money from your PEA for 5 years. That said, not all shares are eligible for the PEA.
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