The Livret A is a bit of a savings darling in France. For a long time, it has offered an easy and safe way to make your money grow. With rules set by the State, it stands out with an attractive interest rate and friendly taxation (no taxes on that!). But what makes this Livret A so irresistible? We tell you everything about this popular product.
What you need to know about Livret A
The Livret A is a savings closely monitored by the French state. Basically, this means that things like the interest rate or how much you can put into it are decided by the authorities. This provides a good dose of security for those who want to invest their money without taking risks.
How far can you fill your Livret A?
For individuals, we cannot put more than 22 950 euros in its Booklet A. If you are a legal entity (such as an association), it is up to 76 500 euros. On the other hand, thanks to the interest that is added each year, it can exceed these ceilings a tad. But be careful, after that, no more deposits!
What rate and tax for Livret A?
At the moment, the Livret A rate is at 3 %but from February 1, 2025it will drop to 2,5 %. Interest is calculated every fortnight (the 1st and 16th) and added to the total each December 31. The icing on the cake? This interest is not subject to social security contributions or income tax!
The Livret A works like your usual savings account but with its small particularities. No more paper booklets: make way for digital statements! No bank card or checkbook here, but we still give you a card to withdraw your money. And then all classic operations (open, close, deposit or withdraw) are free.
Open a Livret A? Easy ! This is possible at any bank in France. The only condition: check that you do not already have another in your name (this is prohibited by law). A contract will seal your agreement with the bank. Beware of sanctions if you have several booklets: it could even impact your CAF aid!
-No need to be a tax resident in France or have a minimum age or a particular nationality to open a Livret A. Even minors can have one; they will just have to wait until they are 16 to be able to withdraw money themselves. As for legal entities such as HLM or non-profit associations, they also have access to the booklet under certain conditions.
Can you combine your Livret A with other investments?
Yes, no problem to combine with other financial products! Just one restriction: it is impossible to simultaneously hold a special Crédit Mutuel passbook account (also called blue passbook) and an A passbook.
With some changes planned for 2025 regarding its interest rate, the Livret A remains a safe bet for those seeking to secure their savings while taking advantage of the tax advantages offered by the French state. Its simplicity and protective regulations mean that it would be wrong to do without it.
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