The Livret A rate will fall in 2025, but this drop could be a pleasant surprise. Thanks to falling inflation, savers will benefit from a better net return. Here's why you should earn more this year despite the falling rate.
You may have heard of the announced drop in the Livret A rate from February 2025. At first glance, this sounds like bad news, especially for those who rely on this investment to grow their savings. However, this drop hides a nice surprise : the net return, once inflation is taken into account, could be much better than in 2024.
This unprecedented situation is a good opportunity to better understand how investments work and to adjust your financial choices. And if, ultimately, your Livret A becomes more advantageous in 2025 despite the drop in the interest rate? We explain everything about this unexpected situation and why 2025 could have good surprises in store for you in terms of savings (unlike this fifty-year-old who lost all the savings in his Livret A).
The rest after this ad
Will I earn more money with my Livret A in 2025 despite the fall in the rate?
From February 1, 2025, the Livret A rate will increase from 3% to 2.5%. Not exactly good news at first glance. But the impact on your savings is not what you think. This drop comes at the same time as much more moderate inflation: in December 2024, INSEE measured inflation of 1.3%, compared to 3% at the start of the year. More concretely, last year, the net return on Livret A was almost zero, because the 3% interest was eaten away by inflation at the same level. This year, even with a lower rate, the real return should be positive, around 1%which concretely improves your purchasing power, reports Capital.
The rest after this ad
This may seem strange to you, but it's mathematical: what matters is the net return, that is, what you earn after removing the effect of inflation. Last year, for example, if you had €10,000 in your Livret A, the interest at 3% brought you €300. But with inflation at 3%, this gain was eaten up by rising prices. Result: zero real profit. In 2025, with a rate of 2.5% and inflation around 1.5%, the same €10,000 would bring you a real return of 1%, or €100 more purchasing power.
The rest after this ad
How can I maximize the returns on my savings in 2025?
The government has several reasons to reduce the Livret A rate. According to Philippe Crevel, director of the Cercle de l’Épargne, here are the three main ones:
- First, this encourages households to spend rather than savewhich supports consumption and therefore the economy.
- Second, it makes increase state tax revenue.
- Third, it allows revive certain sectors such as constructionwho really needs it.
As Philippe Crevel explains: “The idea is that there should be a little less savings and a little more consumption to revive growth.”
The rest after this ad
The Livret A remains an excellent investment: secure, accessible and tax-exempt. But with the rate falling, some of you may want to look other savings options. For example, here is what you can consider:
- Life insurancefor often more attractive returns in the long term.
- Less PEAfor those who are not afraid to take a little risk.
- Real estatea safe bet, even if the market is moving.
- Bondsa stable option between security and performance.
Take time to think about your goals and priorities. And if you have any doubts or questions, do not hesitate to seek advice from an expert. Keep an eye on your investments and adapt your financial strategy: this is the key to optimizing your returns in 2025!
Head of section
Rights of women and children, violence, feminism, gender, discrimination, parenthood, education, money, work, psychology, health, couple, sexuality, social networks…. Joséphine loves deciphering all the social issues that drive…
