TO ANALYSE – This flagship savings product will see its remuneration rise to 3% on February 1. Few investments do better today.
The 55 million French people who hold a booklet A can rub their hands. The rate of this flagship savings product will jump to 3% on February 1, as confirmed by Bercy this morning. This is a little less than expected (around 3.30%) but it remains a significant increase compared to the 2% in effect since August 1, and the rate of 1% a year ago.
Individuals who have not completely filled out their A booklets have every interest in doing so. This investment is fully liquid, free of charge, tax-exempt and completely guaranteed. Few investments do better today. The life insurance fund in euros, also with guaranteed capital, should yield 2% on average, but it is taxed (social security contributions at 17.2%), the stock market is very uncertain, and the real estate held directly or via funds, is heavily taxed. Only the popular savings account (LEP), raised to 6.1%, is much better. But this savings product is not accessible to everyone. It is reserved for low-income households, subject to income conditions (21,393 euros for a single person). “This product aside,the Livret A rate is unbeatable. For any Frenchman who has cash for future spending, this is the best place to put his money.supports Cyrille Chartier-Kastler, founder of the specialized site Good Value For Money.
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And there is scope to do so. “On average, the French hold 5800 euros on this savings medium“recalls Philippe Crevel, economist and director of the Circle of savings. But you can place up to 22,950 euros on this support. Only 4.3 million booklets A are truly filled to the brim.
Up to 140,000 euros for a family of four
If they still have cash to invest, savers can also turn to the sustainable and solidarity development booklet (LDDS), a different savings product but which offers the same characteristics (yield now at 3%, taxation, etc.) and whose ceiling rises to 12,000 euros.
Moreover, for the most financially comfortable households, these deposit limits for these booklets are not necessarily an obstacle. Each individual can subscribe to one, which for a family of four can make it possible to invest nearly 140,000 euros at a now very attractive and risk-free rate. “Should we put everything in such a booklet or invest money for the longer term with a little risk, the question remains,” nuance, however, Philippe Crevel.
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Either way, it’s a safe bet that the French will put more money into what is one of their favorite savings product. “That’s what happens with every rate hike announcement,” recalls Cyril Blesson, associate economist at Pair Conseil. The increase in remuneration to 2% last August had resulted in a rush on this investment from July. The phenomenon continued until October. And in February 2022, the doubling of the rate from 0.5% to 1% had also resulted in a collection surplus over a few months.
Towards a rate of 4% in August?
And it’s probably not over. The remuneration of this flagship savings investment, potentially revised on February 1 and August 1 of each year, is partly linked to the increase in the cost of living (5.9% in December). In view of the inflation forecasts for the coming months, this rate should therefore be raised again, “around 4%predicts Cyril Blesson, associate economist at Pair Conseil. A level not seen since 2008. Enough to magnetize deposits this year, as is the case with each rate hike.
In this hypothesis, household collections could reach records: 39 billion euros in 2023, or 10 billion more than in 2022, according to Pair Conseil. An unprecedented amount which would thus exceed the peak of 2012, at 34 billion euros, linked at the time to a significant increase in the ceiling of this booklet. The enthusiasm for the booklet A is not about to weaken.
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