The Banque de France proposes to lower the Livret A rate from 3% to 2.4% on February 1

The rate of remuneration for this placement is revised twice a year by the government.

The governor of the Bank of France, François Villeroy de Galhau, proposed on Wednesday January 15 to lower the rate of the livret A to 2.4% on February 1, against 3% currently, and to bring back that of the popular savings book ( LEP), reserved for low-income households, at 3.5%, compared to 4% today. The proposal must now be validated by the Ministry of Economy and Finance.

This new Livret A rate, the compass of French savings, “will make it possible to amplify the very positive movement to revive the financing of social housing and local authorities observed for more than a year”justifies the Bank of France in a press release.

The Livret A is one of the favorite investments of the French, its rate is revised twice a year, in mid-January (for application on February 1) and in mid-July (for application on August 1).

This is the first reduction in the Livret A rate since the start of 2020, when this rate went from 0.75% to 0.50%. We have to go back to 2009 to find a larger drop, greater than 0.6 percentage points.

The reduction in the remuneration rate for Livret A, also valid for the Livret de développement durable et solidaire (LDDS), is bad news for the 57 million holders of a “little red livret”.