Livret A

Livret A rate doubled to 2% on August 1, LEP rate rose to 4.6%

The Minister of Economy and Finance announced, on Thursday evening, the doubling of the price of Leveret A, which rose from 1 to 2% on the first of August. . That rose from a popular savings account from 2.2% to 4.6%.

Bank of France Governor Francois Villeroy de Gallo on Thursday proposed doubling the Livret A rate to 2% from August 1, its highest level in nearly a decade. A press release from the Central Bank indicates that this significant increase as well as the increase in the People’s Savings Book (LEP), which will rise at the same time from 2.2% to 4.6%, will support the reward for savers in the face of higher prices. . Soon, the Minister of Economy, Bruno Le Maire, agreed to this proposal in an interview Parisian: Livret A rate will double on August 1st. It will fall by 2%, the highest level since 2012. The Popular Savings Account (LEP) rate will increase from 2.2% to 4.6%.

A savings product that most French keep, the Livret A savings account is priced automatically twice a year. The formula for the calculation is the average, on the one hand, the average inflation rate of the past six months, and on the other hand, the average interbank interest rates, at which banks exchange short-term funds. This was applied to the letter, identifies the Bank of France. Bruno Le Maire didn’t want to go any further because To make an additional increase on the account of Livret A means to penalize the social housing finance. What we gain in terms of wages, we lose in terms of building social housing and protecting the most vulnerable.

In February, Livret A’s wages actually doubled, from 0.5%, a historic low, to 1%. Si cette hausse peut sembler une bonne nouvelle pour les pargnants franais, elle ne doit pas faire oublier que le taux, mme revaloris, va rester trs nettement infrieur l’inflation, mesure par l’Insee 5,8% sur un an en France en June.

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Livret A, good deal?

For a saver who makes €10,000 in Livret A, the gain will be €100 more, for a total of €200, and inflation is projected for the whole of 2022 at 5.5% (Insee forecast June 2022), the real loss of the saver will be €350 in constant €, he explains Economist Philip Krevel. According to a YouGov poll, which was conducted for MoneyVox, 8 out of 10 French people claim the Livret A bonus linked to inflation.

Despite everything, according to Bruno Le Maire, the new Livret A rate remains a good deal. Do you know today many savings products that offer a great deal of security, flexibility and performance? In the current situation, No other product offers so much security. The investment is guaranteed and the interest is tax free. You can release your money whenever you want and the return is guaranteed at 2%, he explains to Parisian.

People’s Savings Book, which sees its price revalued to 4.6%, is reserved for people whose income does not exceed certain ceilings (20,297 euros per year for example for one person). The Bank of France reiterates its support for this tool, which protects the purchasing power of people’s savings, the press release explains, while lamenting the small number of qualified people who own it.

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