Livret A is a type of investment favored by 56 million French people. After a freezing period initiated in 2023, maintaining its rate at 3%, the Caisse des Dépôts announces a reduction in it from February 2025. A decision which, however, implies two positive perspectives likely to delight savers. Explanations.
The Livret A is one of the most popular financial products among the French. “The French favor the Livret A: there are 56 million of them who hold one and each year they save while appreciating its security, availability and profitability. The Savings Fund can thus, within the framework of specific financial management, lend and invest with a long-term perspective”assures Olivier Mareuse, deputy general director of the CDC, director of asset management and the Savings Fund, in a press release.
In 2023, and to deal with the high level of inflation, the Caisse des Dépôts et des Consignations (CDC) voted to freeze the Livret A, maintaining its rate at 3%. But with the decline in consumer prices, the Caisse des Dépôts ended this freezing period, announcing the reduction in the Livret A rate from February 2025. If the return on this financial product still remains attractive, it will no longer follow the previous pace established to counterbalance inflation.
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Livret A: towards a reduction in interest rates?
Thus, from February 2025, the Livret A rate must be set at 2.5%. Behind this decision, which may seem revolting to the many savers who have opted for a Livret A, positive effects seem to be emerging, according to the CDC. Indeed, the reduction in the Livret A rate is likely to lead to a reduction in interest rates. An economic situation in which financial loans prove more attractive, particularly in the real estate or social housing sector.
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“This reduction could result in a significant saving, estimated at one billion euros for 2025”specifies Eric Lombard, director general of the CDC, as reported by the site Carbone Ink. Beyond encouraging borrowing in the real estate sector thanks to a potential reduction in interest rates, the reduction in the yield on Livret A is proving interesting for communities.
Diversification of investments
As a reminder, the financing of social housing is indexed to the Livret A rate. Consequently, this reduction would make it possible to reduce the borrowing costs of the sector and indirectly reduce the charges of local authorities on this expenditure item. Enough to relieve community budgets and potentially encourage the financing of public infrastructure projects.
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Finally, and always according to the site Carbone Ink, this drop in the yield of Livret A can constitute an investment diversification opportunity for savers. Rather than concentrating their savings in this type of financial product, they are likely to turn to other options such as life insurance, securities accounts, or even cryptocurrencies. Diversification of the financial portfolio likely to promote better returns in the long term.
A journalist passionate about social issues and current affairs, Hugo puts his pen at the service of information. Interested in all themes, from the impact of artificial intelligence on…
