Despite the sharp rebound in its rate on August 1, to 2%, the Livret A will still not protect your savings from high inflation. Discover, thanks to our simulator, how much purchasing power you will lose in 2022.
It’s official! The Livret A rate will double to 2%, net of tax, from August 1st. Bruno Le Maire, the Minister of Economy and Finance, confirmed it on Thursday evening: the high inflation which is currently weighing on our purchasing power justifies giving this boost to the most widely held savings product in France, by nearly 56 million French people.
In 6 months, the Livret A rate will therefore have quadrupled. On 1 February last, it had been multiplied by 2, going from 0.50%, its historical low, to 1%. However, this strong rebound will unfortunately not be enough to neutralize the effects of the rise in prices on the purchasing power of your savings.
First, because since a change in the calculation formula in 2020, inflation no longer constitutes a floor during the revision of the Livret A, which also takes into account the interbank rates, which are still very low. Then, because, as its calculation formula requires, this revision was made based on the average inflation rate in the 1st half of 2022, i.e. 4.55%. But in June, the rise in prices has already reached 6% and should remain at this level, at least, until the end of the year. Clear, you will continue to lose purchasing power by placing money on your Livret A.
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What do these losses represent? To find out, we have developed a small simulator. Be careful, the result is quite depressing! It allows you, in fact, for a given amount, to know, over a year:
- the amount of interest you will receive;
- the gross loss of purchasing power on this sum;
- the net loss of purchasing power of the money placed on your Livret A.
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on my booklet A?
By placing
on my booklet A
Over a year…
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Calculations made with a fixed rate of 1.375% for the livret A and 5.60% for inflation. Investment made without withdrawal or payment between January 1, 2022 and December 31, 2022.
The parameters used in this simulation are:
- a average rate of the Livret A of 1.375% in 2022 (0.5% in January, 1% from February to July, 2% from August)
- a inflation rate of 5.6% in 2022consistent with the central scenario of the Banque de France