LIVRET A. Bruno Le Maire has just announced this Friday, January 14 the increase in the rate of the livret A from 0.5% to 1%. What are the immediate effects on your savings? How much are you going to earn? Find out all the answers to your questions.
[Mis à jour le 14 janvier 2022 à 14h26] 1%: Here is the new rate of the livret A. Frozen since February 2020 at 0.5%, the rate of the preferred savings product of the French doubles, as announced Bruno the Mayor, guest of the TF1 news at 1 p.m. this Friday, January 14. “The livret A is used to finance social housing, it is important that it can be financed under good conditions”, underlined in particular the Minister of the Economy. And for good reason, no less than 55 million French people have a livret A and will benefit from this rate hike. Who says revalued rate, says revalued interest. Indeed, for an average outstanding of 5,500 euros, a saver will pocket an interest of 55 euros with a remuneration of 1%, against 27.50 euros previously. An increase that will not offset the increase in consumer prices, the rate of inflation (2.8% in December 2021) remaining well above that of booklet A.
The rates of regulated savings accounts for the French will increase from February 1:
The rate of the popular savings book will drop from 1 to 2.2%.
The rate of the livret A and the sustainable development and solidarity booklet will double, it will go from 0.5 to 1%. pic.twitter.com/ovn6txYkx0– Bruno Le Maire (@BrunoLeMaire) January 14, 2022
With this increase, the livret A will therefore remain a precautionary investment but not the best way to draw interest from your savings. For this, the popular savings account (LEP) is preferred for eligible people. An initiative encouraged by Bruno the Mayor on the set of TF1: “I would like to encourage the French to open a LEP, especially in this period of inflation” before continuing: “We will send in the coming days an email to all French people who are entitled to it to encourage them to open a passbook that protects them against inflation. ” To find out the amount of your interest after the increase in the livret A rate to 1%, Find our complete file below and all the answers to your questions, as well as the benefits to be drawn from this increase in the livret A rate.
Frozen at 0,5% since February 1, 2020, the rate of the livret A has just been revalued up to 1%. In other words, when you benefit from savings of 1 000 euros, you pocket 10 euros interest against only 5 euros interest with the old remuneration set at 0,5%. Find out the amount of your interest, depending on your savings:
- Savings of 1,000 euros: 10 euros interest (5 euros net gain compared to the previous rate)
- Savings of 2,000 euros: 20 euros interest (10 euros net gain compared to the previous rate)
- Savings of 3,000 euros: 30 euros interest (15 euros net gain compared to the previous rate)
- Savings of 4,000 euros: 40 euros interest (20 euros net gain compared to the previous rate)
- Savings of 5,000 euros: 50 euros interest (25 euros net gain compared to the previous rate)
- Savings of 10,000 euros: 100 euros interest (50 euros net gain compared to the previous rate)
- Savings of 22,950 euros (ceiling): 229.5 euros interest (114.75 euros net gain compared to the previous rate)
Since February 1, 2020, the livret A rate was frozen at 0,5%. A historically low rate, and a negative real return for the livret A, below theinflation which was at the height of 2.8% in December 2021. From the February 1, 2022, the latter will be reassessed up to 1%. As a reminder, the rate is set by the Ministry of the Economy and Finance on the recommendation of the Banque de France, according to a mathematical calculation taking into account the level of inflation and interest rates. Very acclaimed by the French, remember that the livret A has a significant advantage: its interests are not subject to theincome tax and social security contributions.
So what is the role of an A booklet? The latter can be likened to a precautionary savings, in addition to his current account. It is advisable to place two to three months’ salary in your livret A. But other solutions exist to save, some of which have seen their rate greatly revalued such as LEP. Subject to resources, the LEP is a guaranteed investment reserved for people domiciled in France and whose resources are limited (20,296 euros of reference tax income for a single person, 31,135 euros for a couple). Its rate, located at 1%, will also be reassessed due to runaway inflation. A hell of a boost coop for LEP which should reach a rate of 2,2% ! the LEP ceiling, him, is fixed at 7,700 euros, excluding capitalized interest. Its extremely attractive rate could well make it a real alternative to the livret A in the eyes of savers. Are you eligible for LEP? In France, 15 million people can benefit from it. Remember that the livret A, like the LEP, remains a tax-exempt savings product. Interest earned by savers is not subject to income tax, nor to social contributions.
Do you have a little extra nest egg and are you looking to study savings and investment products that would allow your money to grow? Consult our file to know the alternatives to the booklet A!
The limit for Livret A is set at 22 950 euros, for individuals. Remember that the payment of interest can quite exceed this limit. As an indication, associations benefit from a much higher ceiling, at 76,500 euros. Anyone, whether a minor or an adult, can open an A booklet., it is not possible to have more than one in different establishments. To open a livret A, you must sign a written contract with your bank, detailing the authorized operations (transfer, payment, withdrawal, etc.). It is forbidden to combine two regulated booklets of the same type (A booklet and Blue booklet) for the same person.
On the other hand, it is quite possible to combine an A booklet with a Sustainable development booklet (LDD) or a young booklet. In addition, it is possible to combine regulated passbooks within the same tax household. To close a livret A, all you need to do is contact your banker, by mail or by going to a branch. You must specify the reference of your livret A and fill in the details of your current account, LDD, CEL … or other account to which you wish to transfer the funds. In the event of closure during the year, capitalized interest is credited to the account on the day it is closed.
The calculation of the interest of the livret A occurs the 1is and 16 of each month, so every fortnight. In other words, if you deposit money on your livret A between 1is and the 15th of the month, the calculation will be effective from the 16th. If you make a deposit between the 17th and the end of the month, you will have to wait until the following month for the date of the value to be taken into account in the calculation of interest . Have you made a withdrawal? Interest is calculated for the current period.
The total interest is added to the capital at the end of the year. When you want to calculate your interest, you should therefore multiply the balance of your passbook by its rate and divide it by 24 (number of fortnights in the year). But beware, this calculation has only a theoretical value. To calculate your return, you must take into account all the movements made on the book.
This is one of the advantages of this regulated savings product. The interests of the livret A are exempt from income tax. They are also not subject to social security contributions. The Livret A also allows transfers and withdrawals without limit of number, and without charge. Finally, It allows the saver to have available capital immediately.