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French savers will have to prepare for further disappointment. Following the publication of the latest inflation figures by INSEE, Livret A and LDDS rate should experience a decline. They will fall by at least 0.5 points from February 2025. But the hard blow does not stop there!
Indeed, the LEP rate, particularly attractive in recent months, would go from 4% to 3%. For your information, this is a 25% reduction. Obviously, this news is far from encouraging. It is still important to emphasize that the real return on these savings products will remain positive.
The Livret A rate blocked at 3%
This is certainly good news for public finances, but it is bad news for savers. For good reason, the rate of Livret A and LDDS, currently set at 3%, will be subject to a downward revaluation. This should apply from February 1, 2025.
This decision is explained by the slowdown in inflation. Indeed, according to the latest figures from INSEE, the latter fell below 2% last August and stood at +1.3% in November 2024. This decline will mechanically lead to a decline of the rate of regulated passbooks.
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Livret A: the ideal day to make withdrawals from your savings without losing money
As a reminder, their calculation formula takes into account equal parts the evolution of inflation and the €ster rate. It is an indicator of European interbank loans. The half-yearly average of inflation excluding tobacco could thus fall below 1.5%. If necessary, this would accentuate the drop in the rate.
Good to know: the Livret A rate had been maintained at 3% since 2023 to protect the savings of the French in the face of high inflation. With the return of price stability, the government now believes it can adjust the remuneration of these booklets downwards.
Livret A: significant drop in the rate
Following the ECB's recent decisions to lower its key rates, the €ster rate is currently at 3.16%. This movement should lead to a drop in the Livret A rate. Sparing you the details, experts estimate that the rate « technique » would be located between 2.4% and 2.5%.
Éric Lombard, general manager of Caisse des Dépôts, spoke at the end of October the possibility of rounding. The new Livret A rate could therefore be at 2.5%. In any case, a final decision on this point should be announced in mid-January 2025.
What about the LEP rate?
Like that of the Livret A, the rate of Popular savings account (LEP) will fall sharply. According to the latest estimates, the rate of this traditional refuge for small savers should drop from 4% to 3% from February 1. This significant drop can still be explained by inflation.
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Livret A, PEL, LEP: the amount of interest you will receive on January 1, 2025
The mechanism for indexing the LEP to inflation, or to the increased Livret A rate, leaves little room for maneuver. Recent inflation data suggests in favor of a significant reduction of the rate, of the order of 25%. However, the government retains discretionary power.
In other words, the executive could decide to mitigate this fall. The next few months therefore promise to be decisive for the millions of French people with an LEP.
A positive return despite everything
Despite the drop in rates planned for the Livret A, the LDDS and the LEP at the start of next year, these regulated livrets will continue to provide a positive real return. In other words, the interest earned on these savings accounts will compensate for the erosion of purchasing power caused by inflation.
Source : MoneyVox
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