The Livret A (+around 450 million euros last month) is for the first time outstripped this year by the Livret d’Epargne Populaire (LEP), which created 800 million euros last month, according to the Caisse des Dépôts (CDC) which publishes monthly data on this product for the first time.
Is the rate effect running out of steam? The growth in the outstanding amount of the Livret A and the Sustainable and Solidarity Development Booklet (LDDS) was divide by four in the month of September over a year and compared to the previous month, falling to its lowest level since October 2022. Savers deposited last month in their Livret A and their Livret de développement durable et solidaire (LDDS) nearly 730 million euros more than they withdrew, the Caisse des Dépôts (CDC) announced on Monday. This amount is four times lower than the previous month (+3.02 billion euros), the month of July (+3.13 billion) or even the month of September 2022 (+3.14 billion), a clear slowdown which may explain by a windfall of the windfall effect of a 3% ratemaintained this level for 18 months since August 1.
Livret A and LDD collection (in billions of euros)
Source of data: monthly press releases from Caisse des Dépôts on the flows and outstanding amounts of Livret A and LDD.
The French who could fill out their A booklets have filled them, observes the founder of the firm Facts & Figures Cyrille Chartier-Kastler, interviewed by AFP, those who have available cash are now turning to other investments. Holders of a Livret A cannot deposit more than 22,950 euros.
Competition from the Popular Savings Account (LEP)
Competition from guaranteed capital products such as term accounts as well as the persistence of inflation, which reduces the saving capacity of households, are also factors explaining this slowdown. The net collection, however, remains higher than that of euro life insurance funds, other guaranteed capital savings products but less remunerative, whose slow hemorrhage began at the end of 2019.
The Livret A (+450 million euros approximately last month) is for the first time outstripped this year by the Livret d’épargne populaire (LEP), which created 800 million euros last month, again according to the CDC which publishes monthly data on this product for the first time. The LEP, reserved for the most modest households, is supported by its remuneration rate of 6% net. October promises to be even more favorable for him since the LEP ceiling has been raised from 7,700 euros to 10,000 euros.
Nearly 10 million people held a LEP as of July 31, and the total outstanding amount as of September 30 was 59 billion euros (+11.1 billion euros since the start of the year), according to the latest figures available. The cumulative outstanding amount of Livret A and LDDS has reached the record level of 551.1 billion euros, swelling by 41.4 billion euros since the start of the year.