The passbook A rate will double on February 1, the first increase in a decade

The preferred investment of the French will go from 0.5 to 1%, announced this Friday the Minister of the Economy, Bruno Le Maire.

Bruno Le Maire was to decide during the day, he decided to follow the recommendations of the governor of the Banque de France. On the set of 13 hours of TF1, the Minister of the Economy announced that the rate of the Livret A was going to “double on February 1”, to pass “from 0.5 to 1%”. A first in more than ten years.

A pay rate of 1% “would be likely to better ensure the remuneration of the holders of the Livret A, without creating too high an additional cost, in order to preserve the financing of social housing”, had specified the Governor of the Bank of France before the intervention of the Minister. Its rate of remuneration is calculated twice a year by taking the average between, on the one hand, the average inflation rate of the last six months and, on the other hand, the average of the interbank rates, at which the banks exchange short-term money.

The last increase in the Livret A dated back to August 2011, when it went from 2 to 2.25%. It has only stagnated or fallen since then, falling in February 2020 to 0.5%, its all-time low. Despite a relatively low level of remuneration, the Livret A has become a safe haven investment for savers during the health crisis which has seen its outstandings jump. More than 55 million French people owned one at the end of 2020.

In addition to that of the Livret A, the Minister of the Economy announced the increase in the People’s Savings Account (LEP), reserved for the most modest, which will increase from 1 to 2.2%, again in accordance with the proposals of the Bank of France. “All French people earning less than 20,000 euros per year have the right” to this booklet “better protects against inflation”, reminded Bruno Le Maire.

Although better off than the Livret A, the remuneration of the LEP nevertheless remains well below the rise in consumer prices, calculated at 2.8% by the National Institution of Statistics (Insee) a little earlier in the day. . The level of inflation in France is thus at its highest since 2008.

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