The rise in the Livret A rate, starting on 1 February, will boost the remuneration of many young Livret savings accounts. Several establishments including La Banque Postale, Socit Gnrale, BNP Paribas and Crdit Agricole will have to improve their current offer for 12-25 year olds.
The announcement on Friday by Bruno Le Maire of the increase in the rate of the Livret From February 1 is of course good news for the 55 million individuals who have one, but also for those who hold an LDDS. Indeed, the revaluation of the red booklet from 0.5% 1% also applies to the Sustainable and Solidarity Development Booklet.
But this decision also has an impact on another placement: the Young Booklet, available for 12-25 year olds. You can pour up to 1600 euros and, as for the Livret A, the LDDS or the Livret d’epargne populaire, the interest on this product is completely exempt from taxes and social security contributions. Small subtlety, on the other hand: contrary to the other booklets regulations whose rate is uniform regardless of the financial institution in which it is opened, each bank freely sets the level of remuneration for its youth savings account according to its commercial policy. On condition, however, that this rate is at least equal to that of the booklet, ie 1% from 1 February.
Livret A, LDDS, LEP, Livret jeune… Official rates as of February 1, 2021
According to the statement established by MoneyVox, several banks will therefore have to raise the rate of their young savings account by at least 1%. This is the case with Crédit Agricole, BNP Paribas (including Hello bank!), Socit Generale and Banque Chalus, where the rate is 0.5%. Ditto at LCL and La Banque Postale with a current rate of only 0.75%. Several establishments in the Banque Populaire network, Caisse d’pargne or even Crdit Mutuel will also have to increase the rate of their young savings account from 0.75% to at least 1%.
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It will be interesting to see how the other banks will react which already offer a rate of at least 1% for their young savings accounts such as the Crdit coopratif (1.25%), CIC (1.35%) or the image insurers of Axa (1%) and Macif (1.5%). Will they improve it to attract or retain their young clients? For the moment, HSBC is the race in the lead with a rate of 2% for its Young Booklet. Until when?
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