The government has finally decided to make an additional gesture to increase the rate of remuneration of the Livret A which will double from February 1, from 0.5% to 1%. The announcement was made this Friday on the 1 p.m. television news on TF1 by the Minister of the Economy, Bruno Le Maire.
The formula for calculating the rate of the preferred security savings support of the French, indexed in particular to inflation, the average of which reached 2.2% in the second half of 2021, only corresponded to an increase to 0.8%. By rounding up to 1%, the government is therefore applying a boost that will perhaps be appreciated by the 55 million holders of this tax-free savings account, a few months before the presidential election.
What extra pay?
For holders of Livret A, a rate of 1% against 0.5% today will not revolutionize purchasing power. Even taking the example of those whose Livret A is filled to the maximum ceiling of €22,950, the annual interest will drop from around €115 to just under €230. In 2022, it will also be a little less (around €220) since there will only be 11 months at 1% and the month of January at 0.5%.
With €10,000 on his Livret A, the annual surplus will only be €50 per year (from €50 to €100), or €4.17 per month.
LDDS
This increase to 1% will also benefit the sustainable and solidarity development booklet (LDDS), the rate of which is identical. The ceiling of the LDDS is however limited to 12,000 €, ie a potential interest of 120 € per year.
Fundraising should pick up again
The Livret A outstanding amount was 343 billion euros at November 30, 2021 and that of the LDDS was 125.2 billion euros. These amounts have increased sharply since the start of the health crisis before falling slightly in recent months. With a doubled rate of return, collection should start to rise again because the two passbooks remain a secure receptacle for cash much appreciated by the French.
algorithm
The Livret A remuneration is revised twice a year, in February and August, on a proposal from the Governor of the Banque de France, which must be accepted by the Minister of the Economy. The calculation formula in force corresponds to the half-yearly average of the inflation rate for the last six months and of the 6-month short-term interbank rates (Euribor), with a rounding calculated to the nearest tenth of a point, without being able to be lower. at 0.5%.