Purchasing power –
The Livret A will bring less to savers in 2025
The interest rate on this very popular savings account in France should drop from around 3 to 2.5% from February. Swiss people and cross-border workers residing in France are concerned.
Published today at 8:31 a.m.
The Livret A is the most popular savings account in France, since eight out of ten people have one.
AFP
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The news will not delight those who live in France, particularly cross-border workers and many Swiss. The annual rate of remuneration for Livret A should fall from next month. This is what the new French Minister of the Economy, Éric Lombard, announced this Monday on France Inter radio.
In a few days, the governor of the Bank of France will propose to the French Minister of Finance a new rate, “very certainly indeed a reduction”, and it is “around 2.5% […] that the decision will be made,” declared Éric Lombard. As a reminder, the Livret A rate has been frozen at 3% until January 31, 2025.
The minister put the impact into perspective: “The Livret A rate will fall, but inflation has fallen sharply since it is around 1%.” Even with a less remunerative rate, “savings are not only protected, but they allow real wealth to increase,” he assured.
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Concretely, with a fully completed Livret A, i.e. 22,950 euros (authorized ceiling, excluding interest) and at the current rate of 3%, the interest pocketed was 688.5 euros as of December 31, 2024, calcule TF1.
For comparison, with the same ceiling but a rate planned at 2.5%, savers will receive interest on the last day of 2025 for an amount of 583.31 euros, or 108 euros less, still according to the French TV channel.
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New drop in August?
This probable decline would be the consequence of the decline in inflation in recent months. Over one year, this reached 1.3% in December 2024, according to a provisional estimate from INSEE (the French equivalent ofSwiss Federal Statistical Office). The Livret A rate is revised twice a year and is set according, in particular, to the increase in prices over the last six months.
This reduction decision is also political. The upcoming reduction in the rate is supposed to encourage the French to save less and consume more, explains Philippe Crevel, economist, quoted by Agence France Presse (AFP). The one who is also general director of the Savings Circle estimates that the rate “could decrease again on 1is next August”, at 2.25%.
star savings account
Created in 1818, the Livret A is a regulated savings account. Its particularity is to be exempt from income tax and social security contributions.
This type of investment is the preferred one in France. As of December 31, 2022, nearly 56 million French people had one, or 81% of the population, indicates the French Ministry of Economy and Finance.
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Fabrice Breithaupt has been a journalist and PR editorial secretary since 1995. He deals with Franco-Swiss cross-border issues, but also real estate, employment and training.More info
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