The passbook A rate will return to its highest level since 2012. From August 1, the preferred investment rate for the French will drop to 2%. Announcement made this Thursday by Bruno Le Maire, Minister of the Economy, in an interview at the Parisian.
The popular savings account rate (LEP) will rise from 2.2% to 4.6%. According to the minister,LEP is the most effective investment to protect against inflation“. With this decision, Bercy has chosen to follow the recommendation of the Governor of the Banque de France, in charge of calculating the rate for the Livret A each semester. These increases “support savers’ returns in the face of rising prices“, indicates the Bank of France in a press release.
A savings product held by the most French people, the Livret A has its rate calculated automatically twice a year. The calculation formula takes 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 . This was applied to the letter, specifies the Banque de France.
In February, the remuneration of the Livret A had already doubled, going from 0.5%, a historic low, to 1%. While this increase may seem like good news for French savers, it should not make us forget that the rate, even when revalued, will remain very much lower than inflation, measured by INSEE at 5.8% over one year in France in June.