The Livret A is a popular savings option, and it could soon disappear. She is going through a difficult period according to economists.
The Livret A has been an essential savings product in France since its creation in 1818. Initially launched to encourage savings popular and finance projects of general interest, it has established itself as the preferred investment of the French.
A Livret A that bears fruit
In France, the Livret A is exempt from taxes and social security contributionsseduced by its simplicity and security. The latter guarantees savings available at any time.
Over the decades, the Livret A has therefore accompanied the country's major economic and social milestones. It therefore financed projects of public interest, particularly in housing socialby lending part of its funds to the Caisse des Dépôts et Consignations.
It is a vector of national solidarity, which supports the infrastructure financing. And this, while allowing savers to obtain a stable return, even in times of financial uncertainty.
In the early 2000s, its popularity increased by trivialization of its distribution in all French banks in 2009. This facilitates the opening of a Livret A.
This reform thus increased its collection, making this savings more accessible and more democratic. The interest rate, historically around 2 to 3%, has fluctuated depending on inflation and political decisions, reaching low rates.
Today, the Livret A remains a pillar of savings in France, with nearly 55 million accounts opened. Its collection experiences variations, influenced by economic factors and monetary decisions.
Bad news about him
Although the Livret A remains one of the most popular savings investments popular in Francehe is going through a difficult time. Indeed, economists do not say they are optimistic about the future of the latter.
In fact, net collection is currently declining. Among the savings accounts available in France, the Livret A stands out for its popularity.
Remember that this is a booklet regulated by the State, which sets the terms. Like the interest rate, currently at 3%, and the deposit ceiling, set at 22,950 euros for individuals and 76,500 euros for associations.
This booklet is therefore intended to be exempt from taxes, which contributes to its attractiveness. Despite its 3% yield, the net collection of Livret A decreased, with only 210 million euros deposited in September.
One of the lowest levels since 2021. This decline contrasts therefore with the higher collection observed last August and at the same time, the LDDS (Sustainable and Solidarity Development Booklet) also shows stagnation.
Why is Livret A going through a difficult crisis?
The reasons for this decline are multiple. Indeed, according to economists, several factors explain this slowdown of the well-known Livret A.
Indeed, the month of September, synonymous with the start of the school year, often requires significant expenses. This limits deposits on Livret A.
End-of-month tax deductions and yield, although stable at 3%, remain less competitive compared to other savings products. The latter also faces growing competition.
Faced with the drop in Livret A collection, other investments gain popularity. In September, the LEP (Livret d'Épargne Populaire) recorded 330 million euros in additional deposits, bringing its outstanding amount to 77.6 billion euros.
Life insurance euro funds also attracted savers with a net inflow of 2.5 billion euros. This brings the total outstanding amount of life insurance to an additional 21.3 billion euros since the start of the year.
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