2023-08-13 13:45:15
In recent months, term accounts offered by banks have been gaining popularity thanks to more generous remuneration.
The decision disappointed savers. Contrary to what was expected, the Livret A rate of return, which should have risen to 4.1% on August 1 if the traditional calculation formula had been respected, will remain blocked at 3% until … 2025. A choice made by the Banque de France and the Ministry of the Economy so as not to penalize the financing of social housing.
Liquid and risk-free, the Livret A book still retains its interest. But other investments with similar characteristics can also allow you to grow your savings without fear of losing your investment. Starting with the People’s Savings Book whose remuneration is set at 6%. Particularly interesting, the LEP is however reserved for low income and its ceiling is limited to 7700 euros. Moreover, among the holders of this popular savings account, 47% had a higher balance at the end of 2022, due to the accumulated interest.
Other risk-free investments also include the Housing Savings Plan (PEL) and life insurance in euro funds, each with its advantages and disadvantages. Long forgotten, another savings product is getting a second life since the rise in interest rates: the term account.
What is the term account?
The CAT is a savings account with guaranteed capital, therefore risk-free, offered by banks. For several months, this investment whose yield is, like the Livret A, boosted by the rise in interest rates has been gaining popularity with a total outstanding amount of 114 billion euros in June, against 80 billion in January, according to the Bank. of France.
Any adult can open one, without having to pay any fees either when signing or after. The contract drawn up by the bank must mention the period during which the savings will be blocked (between one and three years on average), the minimum and maximum amount of payment as well as the level of interest.
Please note that no additional payment to the initial deposit is possible during the term of the contract. In theory, withdrawals are also prohibited: the sum placed at the opening is immobilized in the account until maturity. A saver who needs to recover his bet earlier than expected can however claim it, but this will result in early exit penalties on the remuneration as well as the closure of the account.
What compensation?
Futures interest rates are set by banks. Several contracts exist: fixed rate, progressive rate (remuneration progresses over time) or variable rate.
With the rise in rates, some establishments are currently offering a much more attractive yield than a few months ago. Distingo Bank, for example, promises its customers who already have a savings account with it a gross remuneration of 3% for opening a “Green” term account with a commitment period of 10 months. For a minimum payment of 1000 euros, the bank also offers slightly longer and therefore better remunerated term accounts: one year (3.1%), 2 years (3.15%) or 3 years (3.2% ).
For its part, Boursorama offers its clients a CAT with a gross annual rate of 3% over 12 months and 3.5% over 18 months for a minimum deposit of 5,000 euros, with no payment ceiling. Monabanq customers can opt for a progressive rate term account with a gross interest of 1.5% the first year, 2.5% the second, 3% the third, 3.5% the fourth and finally 4.5% in the fifth year. On condition of paying at least 3000 euros at the subscription.
What taxation?
Knowing that the slowdown in inflation is likely to lower the Livret A rate from 2025, opening a CAT whose return is known in advance can prove to be a winning bet, provided you are ready to immobilize this savings for a period of time.
However, it is preferable to consider the term account as a complementary product to regulated savings accounts rather than as an alternative. Because unlike the Livret A or the LEP, the interests of the CAT are taxed. These are indeed subject to the single flat-rate deduction (12.8% for income tax and 17.2% for social security contributions) or to the progressive scale of income tax if this option is more advantageous.
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