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The Livret A has recently been the subject of numerous debates, particularly since the freezing of its rate at 3%. This rate, maintained throughout 2024, will change next February. From 2025, this freeze will end, and a drop in rates is expected.
The looming change raises questions: with this evolution, which booklet will be the most profitable in 2025? Should we still favor the Livret A or turn to the LEP (Livret d’Épargne Populaire)? Let's see together which choice could prove to be the most advantageous.
A reduction in interest rates for Livret A
2024 is coming to an end and you may already be thinking about your finances for 2025. Popular savings accounts such as the Livret A and the LEP are the favorite investments of the French. For what ? Because they offer investment security, and their remuneration remains advantageous despite the drop in interest rates.
Until now, the Livret A rate has been frozen at 3%. This means that a deposit of 1,500 euros earned around 45 euros in interest. In addition, you can exceed the ceiling of 22,950 euros in interest.
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However, for 2025, a decline seems inevitable. The Livret A rate could fall to 2.5% from February. Which is not a huge surprise given the current economic situation.
And the LEP in all this?
The LEP, although reserved for low-income households, remains an interesting option. In 2024, this booklet was particularly attractive with a rate of 6%, which then fell to 4%.
For 2025, experts expect a rate drop to 3%. Even with this reduction, the LEP will remain more profitable than the Livret A, the rate of which, as we have seen, should drop to 2.5%. LEP has certain advantages. In fact, it is completely tax-free, and you can contribute up to 10,000 euros into it.
However, be careful, there are strict resource conditions to be entitled to it. In 2024, a single person should not exceed 22,419 euros of reference tax income, and 34,393 euros for a couple. This booklet is therefore aimed at a specific segment of the population.
So, Livret A or LEP, which is more profitable in 2025?
With the coming rate cut, the LEP will remain more interesting than Livret A for those who are eligible. On the other hand, if your income excludes you from the LEP, you will have little choice but to turn to the Livret A.
To have
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On the other hand, it is always essential not to neglect other forms of investment. For example, the Housing Savings Plan (PEL)even if it currently offers a lower rate than that of the Livret A. With a rate of 2.25% in 2024, it remains efficient, especially if you are considering a medium or long term real estate project.
Soon an interest payment
But before worrying about rate cuts, take advantage of current interest first! In fact, the interest on Livret A and LEP accounts will be added to your savings in the night of December 31 to January 1.
You can therefore expect to see your account credited with interests of the year 2024 in the first days of 2025. This is an opportunity to receive a little financial boost just after the holidays, before the new rates come into effect.
Take the opportunity to take stock of your savings. Consider the impact of upcoming changes on your returns for the following year.
