2023-10-14 14:20:36
The future climate savings plan is a new savings product aimed at young people which will soon be launched in France. It will contribute to financing the ecological transition, while ensuring a higher return than that of Livret A.
This product consists of a securities account which allows you to hold transferable securities. These can be stocks, bonds or even financial securities. This account can be opened in a bank, like stock savings plans (PEA). It will be coupled with a cash account and the saver will be able to make payments there which will then be used to purchase financial securities.
When a future climate savings plan is taken out with an insurance company, a mutual insurance company, a union of mutual societies, a provident institution or a union of provident institutions, it will result in the creation of a capitalization contract. This is a savings product that has similarities with life insurance.
The new climate savings plan was approved by the Joint Commission and will direct young people’s savings towards specific assets. The maximum amount to invest has not yet been announced, but it should align with the Livret A ceiling, i.e. 22,950 euros. The main objective of this plan is to promote “green” investments, as well as European bonds and green Assimilable Treasury Bonds (OATs) issued by Agence France Trésor.
What returns can we expect from the Future Climate Savings Plan?
You should also know that this product will direct part of the investments towards low-risk assets, such as bonds issued by European states or securities of companies headquartered in France or in an EU member state. This will combine potentially high profitability through equity investments, while controlling the risk of capital loss through portfolio diversification.
Unlike regulated savings accounts, the future future climate savings plan will not be accompanied by an interest rate set by the public authorities. Its return will depend on the securities in which it is invested, but it should be more attractive than that of Livret A (currently at 3%). The interest generated will not be subject to taxation or social security contributions, which will provide an advantage in terms of net returns for savers.
The future climate savings plan will be accessible to French residents under the age of 18. The invested funds are only released when the holder reaches the age of majority, i.e. 18 years old or exceptionally 21 years old if they have been blocked for at least 5 years. Once unlocked, it is frozen for further payments, but redemptions can be made until the age of 30, at which point the plan automatically closes.
It should be noted that the future climate savings plan does not guarantee capital at all times. It promises to guarantee savings only at the time of release, i.e. when the holder reaches the age of majority. The funds are invested in increasingly secure investments as the holder approaches the age of 18, which involves a risk of capital loss in the event of early release. Certain situations, such as the disability of the holder or the death of a parent, allow early release. In the event of the death of the holder, the plan is closed, and the beneficiaries can withdraw the funds.
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