The Livret A allows French people to build up savings each year. Moreover, two pieces of good news will delight savers.
For decades, Livret A has borne fruit. Moreover, if the forecasts for 2025 are mixed, this good news should delight many French people.
The Livret A at the time of inflation
In recent years, inflation has weighed heavily on the daily lives of the French. This therefore led to a price surge in key sectors such as energy, fuel, real estate and food and the Livret A has not been spared.
In response, rates savings accountsnotably those of booklet A and LEP, were noted. Because the latter are indexed to the evolution of inflation.
However, in September, an unexpected break in the price rise provided a welcome respite to households. This allowed better management of daily expenses.
If this lull constitutes a breath of fresh air for household finances, it will therefore have also repercussions on the interest rates of savings products. Like booklet A, the LEP, and the LDDS.
Maintained at 3% throughout 2024, the Livret A rate could thus experience a decline from February 1, 2025. This is due to the moderation of inflation.
According to estimates relayed by MoneyVox, the technical rate could approach 2.5%. And this, although annual inflation excluding tobacco still reached 4.2% in July 2023, before temporary freezing rates decided by the Ministry of the Economy.
A savings product that continues to be a hit
Despite everything, the Livret A remains one of the French people's favorite financial products. “There are 56 million of them who have one, appreciating its security, its availability and its profitability. Thanks to this savings, the Savings Fund can invest and lend in the long term within the framework of specific financial management”said Olivier Mareuse.
The deputy director general of the CDC, in charge asset management and the Savings Fund therefore remains confident. In 2023, to counter high inflation, the Caisse des Dépôts et Consignations (CDC) maintained the Livret A rate at 3%.
However, with inflation falling, the CDC announced the end of this freeze, and the rate will increase to 2.5% starting in February 2025. Although this yield remains attractive, it will no longer be seen as high as before.
Period during which it was adjusted to compensate for inflation. From February 2025, the rate cut could seem disappointing for savers.
However, the CDC sees positive effects. Indeed, a decrease in rate of Livret A could lead to a drop in interest rates.
Good news for Livret A in 2025
This will therefore make borrowing more affordable. Particularly in the real estate sectors and social housing, that’s excellent news.
“This reduction could generate savings of one billion euros in 2025”specifies Eric Lombard, director general of the CDC, quoted by the Carbone Ink site. The decline interest rates would make it possible to finance real estate projects more advantageously.
But also regarding social projects. This will therefore allow reduce expenses financial resources of local authorities and this could relieve their budgets and support the financing of public infrastructure.
Finally, according to Carbone Ink, this drop in yield therefore represents an opportunity to diversify your investments. Rather than concentrating their savings on the Livret A, savers could explore alternatives such as life insurance.
But also securities accounts, or even crypto-currencies. A diversification that could offer better yields in the long term.
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