the theoretical rates for your savings from 1 August

The remuneration of the Livret A should increase from 1 to 2% from August 1 due to the acceleration of the rise in prices. The Sustainable and Solidarity Development Booklet would also rise to 2%, and the People’s Savings Booklet to 4.5%.

This Wednesday, INSEE announced that the rise in consumer prices had reached 5.2% (and even 5.3% excluding tobacco) in May over one year, confirming its first estimate. Inflation which continues to accelerate since it was 4.8% in April.

It is in this context that the Livret A rate will be revised from 1 August. The Governor of the Banque de France, Franois Villeroy de Galhau, has already confirmed that the remuneration of the Livret A, hitherto fixed 1%, was going to be upgraded. But he did not give more information on the extent of the increase. It is he, however, who will have to give his recommendations to the government in mid-July.

For this, it will be based on the algorithm the Livret A rate. This corresponds to the arithmetic mean between the change, on average over the last half-year, in annual inflation excluding tobacco and the STR. The latter is an indicator based on the interest rates of short-term loans taken out by banks in the euro zone in euros.

4.5% for LEP

In light of INSEE’s publication this morning, the Livret A rate has every chance of going 2% on August 1. As a result, the rate of the Livret de Développement Durable et Solidaire (LDDS), the false twin of the Livret A, will also be raised. 2%. At the same time, the Popular Savings Account (LEP) would rise from 2.2% at present to 4.5%.

It should be noted that the government retains the last word in the matter: it is the government that ultimately sets the remuneration for regulated savings if the governor decides not to apply the formula. But in a context of high inflation which is chipping away at household savings and purchasing power, it is a safe bet that the executive will accept a doubling of the rate of the Livret A, LDDS and LEP. With inflation which, over the last six months, has exceeded 4%, the real yield on the Livret A is negative by several points. Capital is no longer preserved in this way. We must go back to the 1980s to have such a gap between the inflation rate and the rate of return on the Livret A, explains the economist Philippe Crevel.