The Governor of the Banque de France, François Villeroy de Galhau, proposed, on Thursday July 14, to double the rate of the Livret A to 2% from 1is August – its highest level in nearly a decade. This increase “meaningful” and that of People’s Savings Account (LEP)which would increase at the same time from 2.2% to 4.6%, “make it possible to support the remuneration of savers in the face of rising prices”according to a statement from the central bank.
In an interview at Parisian published in the evening, the Minister of the Economy, Bruno Le Maire, confirmed these two increases. “On the Livret A account as on the LEP, we have chosen to follow the recommendations of the Governor of the Banque de France”he explained.
The popular savings account is reserved for people with incomes not exceeding certain ceilings (20,297 euros per year, for example, for a single person). “The LEP is the most effective investment to protect against inflation. But it is not well enough known! Fifteen million of our compatriots have the right to open an LEP and less than half have one”regretted the Minister of the Economy, who announced a ” country (…) who will contact the French people concerned directly by e-mail..
A rate that will remain well below inflation
For its part, the Banque de France “recalls its support for this instrument which helps to protect the purchasing power of popular savings”explains the press release, while also deploring that too few eligible people hold them.
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 . 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.
A bogus bargain? ” Absolutely not ! »replied Bruno Le Maire to the Parisian. “In the current situation, no other product offers so much security. The investment is guaranteed and the interest is tax-exempt. You can release your money whenever you want and the return is guaranteed at 2%”argued the minister.