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Our colleagues from MoneyVox are interested in data from Caisse des Dépôts concerning the savings of the French in Booklet A, the LDDS and the LEP. Data which may surprise, but which can be explained.
Regulated booklets are still popular in France. They owe this to their advantageous taxation and ease of use. With them, Savers can add or withdraw funds whenever and however they want. And this, at no cost. So what did they do in October? Did they save even more or did they decide to spend their money?
Livret A: the French withdraw funds
Booklet A records a net outflow of 1.94 billion euros in October, while the Sustainable and Solidarity Development Booklet (LDDS) saw its outstanding amount decrease by 640 million euros. In total, these two regulated savings investments lose 2.58 billion euros. Enough to bring their overall outstanding amount to 581.8 billion euros.
What does this mean exactly? Our colleagues at MoneyVox explain it to us. Simply put, savers withdraw more money in October than they add. Between entries and exits from Livret A, the balance is negative.
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Livret A: these investments will exceed the French star livret in 2025
Is this surprising? Not really. In fact, experts note a loss every year in October. This is explained, for example, by the payment of property tax or tax regularizations. That said, this decline remains significant, even if less significant than in 2023.
The LEP differs from the Livret A
On the other hand, where Livret A shows losses, this is not the case for LEP. Last year, the increase in the ceiling of the Livret d'Épargne Populaire (LEP), from 7,700 to 10,000 euros, pushed certain savers to switch in favor of this more profitable product. This dynamic remains visible in 2024, where the LEP continues to appeal thanks to its interest rate of 4%, much higher than that of the Livret A (3%).
In October, the LEP recorded a positive net collection of 210 million euros, confirming its status as a refuge for low-income households. As a reminder, unlike the Livret A (which is aimed at everyone), only a few French people can open a LEP. This savings concerns exclusively the most modest households.
An honorable year and prospects for 2025
Despite this decline in October, the year 2024 remains generally favorable for Livrets A and LDDS, with a cumulative net collection of nearly 17 billion euros since January. This performance is comparable to that of 2019, with the health crisis. This confirms the population of these two products. In 2024, More than 80% of French people still have a Livret A.
The start of 2025 could, however, mark a turning point with a probable reduction in remuneration rates. The Livret A and the LDDS should lose 0.5 points on February 1, 2025, following the evolution of economic indices. For its part, the LEP could see its rate fall from 4% to 3%, due to the slowdown in inflation.
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This will obviously play a role in the management of the French economies. It is in fact the end of stability for the Livret A and the crazy attractiveness for the LEP.
