Optimize bank promotions on their bank accounts to boost your savings without taking any risk: this is the book hopping technique. Here’s how to take advantage of it.
Even if it slows down, the rise in prices remains sharp. Over the whole of 2023, it should reach 5% according to the latest projections from INSEE. In this context, it is better to avoid keeping too much money in your current account, which in principle does not earn money. In fact, its value in terms of purchasing power decreases mechanically since the price of goods and services increases.
This is what pushes individuals to fill out their regulated savings accounts. Carried by a rate of 3% since February 1, the Livret A and the LDDS are in the running for a record year. They have in fact swelled by more than 40.69 billion euros since January, unprecedented. The cumulative outstanding balance on these two savings accounts amounted to 550.4 billion euros as of August 31, another record.
Bank book rates rising sharply
However, according to the latest figures from the Banque de France, deposits seen by individuals still represented 502 billion in July. A considerable windfall: 16,737 euros on average in the current accounts of 30 million French households!
Once the ceiling for regulated savings accounts is reached, it is possible to look at bank accounts offered by banking establishments to invest your savings, without taking any risk. The remuneration offered is more and more attractive.
According to the latest statement from the Banque de France, the average rate on these savings accounts increased from 0.22% to 0.74% in August. And certain establishments are waging a fierce battle to attract deposits from individuals, particularly with boosted rates.
These are welcome offers put forward by banks to encourage you to open their in-house savings account. Specifically, during the first months following subscription to a boost booklet, your payments are paid at a rate significantly higher than the base rate. This is the case of Placement-direct.fr which announced last week the launch of its Super Livret Placement-direct, paying 5.25% for 3 months. A great rate that can be optimized using the booklet skipping technique.
The skipping technique
Passbook hopping is aimed at opportunistic investors who like to hunt for bonuses. Because you will have to be proactive: monitor commercial offers and move your funds according to promotions.
In practice, once the best bidding bank has been identified, this method consists of open your savings account and transfer as much savings as possible to take full advantage of the bonus period. Then once this comes to an end, you must open another boost support move your savings there and so on. By proceeding in this way, you can succeed in obtaining remuneration of at least 3% for several quarters in a row.
But this technique requires motivation, but above all time and organization. Because banking establishments attach specific conditions to their boosted rates. In addition to a maximum amount to which the boosted remuneration applies, you will most often be asked to keep your booklet beyond the promotional period until the end of the year.
But, to stay on track, you don’t need to leave all your savings there! When the bonus stops, you can simply maintain the minimum outstanding amount provided for in the general conditions of the product. This amount is generally 10 or 15 euros.
Pay attention to the bonus conditions
Some banks require you to simultaneously open a current account, or even add a bank card to it. In this case, you must pay attention to the fees inherent in holding an account (account maintenance fees, card fees, etc.) including in online banks. Although most of them do not charge for it, they can nevertheless apply penalties if you do not use it enough. This penalty of a few euros is triggered when you do not carry out at least one transaction per month with your bank card.
The good news is that this obligation to open an account can turn into a godsend when it comes to online banks. In fact, the latter also reward the subscription of a first current account with specific welcome offers. Traditionally, they take the form of a bonus of at least 80 euros paid just a few days after opening and can exceed 200 euros during one-off offers.
Another point of attention before you start skipping the booklet: keep in mind that these promotions are reserved for brand new customers opening their first booklet in the establishment. Consequently, you will only be able to benefit once from the boosted remuneration on the vis support.
Comparison of offers on the best bank accounts
The biggest boost rates in effect!
You have the soul of a bounty hunter, here are the biggest bonuses of the moment:
- 5.25% for 3 months, up to 150,000 euros, on the Super Livret Placement-direct
- 5% for 3 months, up to 100,000 euros, on the Monabanq Livret Rentabilis,
- 5% for 4 months, up to 100,000 euros, on the Fortuneo Livret +,
- 4.5% for 3 months, up to 100,000 euros, + 80 euros premium with the Renault Bank Zesto Booklet
- 4% for 3 months, up to 100,000 euros, on the Distingo Livret from Distingo Bank.