The Livret A raked in 4.5 billion euros last month, recording the best month of August in its history, boosted by the increase in its rate from 1% to 2%, according to data published Wednesday by the Caisse des deposits.
The Livret A book flies from record to record. The most famous passbook recorded a net inflow (difference between deposits and withdrawals) of 4.5 billion euros last August. Be the best month of August in its history. By way of comparison, in August 2021, net inflows amounted to €1.67 billioni.e. almost three times less.
23.6 billion euros collected
This record for August comes after that of July, which had seen an unprecedented net inflow for this month of the year, at €2.64 billion. Since the start of the year, Livret A outstandings have increased by 23.6 billion euros, almost as much as the 24.5 billion euros recorded between January and August 2020, when the start of the pandemic had boosted the attraction of the French for the Livret A.
Livret A and LDD collection (in billions of euros)
Source of data: monthly releases from Caisse des Dépôts on the flows and outstandings of Livret A and LDD.
Discover the best free bank cards thanks to our comparison
Rate hike
In question, the recent increase in the interest rate of the Livret A, which went from 1 to 2% August 1st. This increase, the second in the space of a few months, is excellent news for 54.9 million French people who hold a Livret A.
In appearance at least, because the remuneration of the Livret A remains to this day well below inflation. In August, the surge in prices reached 5.9% over 1 year, according to INSEE estimates.
However, the facts remain: the Livret A rate has become more advantageous than that of many euro funds (the least risky) for life insurance. In 2021, the average return on these media was around 1.28%, according to the Bank of France. However, some insurers still manage to hold their own.
But for how long ? Because if inflation holds up, other rate hikes are to be expected. “Given inflation and interest rates, the yield on the Livret A could go to 3 or even 3.2% on February 1 », Estimates Philippe Crevel, director of the Cercle de l’épargne.
Life insurance: the top 10 contracts
780 million euros more on the LDDS
The Sustainable and Solidarity Development Booklet (LDDS) recorded a net collection of 780 million euros in August. The cumulative outstanding amount of the two passbooks amounts to approximately 497 billion euroswith an increase of 5.2% over a year.
Managed jointly by the Caisse des dépôts (CDC) and the banking networks, the Livret A is mainly used to finance social housing, while the LDDS is dedicated to the social and solidarity economy as well as energy savings in housing. .
Should we boycott life insurance and prefer Livret A?
Reproduction forbidden.