The year 2025 promises to be eventful for holders of Livret A and Livret d’Épargne Populaire (LEP). These savings products, long considered safe values, face the prospect of a rate cut which is causing concern among French savers.
Evolution of Livret A and LEP rates: what awaits you in 2025
After a period of stability, the Livret A rate, frozen at 3% for two years, will undergo its first revaluation on February 1, 2025. This date marks the start of a new era for regulated savings in France. Eric Lombard, general manager of Caisse des Dépôtshas already announced a drop of half a point for Livret A.
The LEP, for its part, has not experienced the same stagnation. Its last revaluation dates back to August 1, 2024. On the other hand, the two booklets will follow a similar downward trend in 2025. Here is an overview of the expected changes:
- First drop: February 1, 2025
- Second potential drop: August 1, 2025
- Gradual decrease in rates throughout the year
These changes are not without consequences for retirees who rely on these booklets to improve their daily lives. It is essential to stay informed to adapt your savings strategy accordingly.
Factors influencing the decline in savings rates
Several elements contribute to this downward trend. L’National Institute of Statistics and Economic Studies (Insee) forecasts a stabilization of inflation at a lower level. According to their estimates:
| Period | Expected Average Inflation |
|---|---|
| 1st semester 2025 | 0,9% |
| 2nd semestre 2025 | 1,3% |
At the same time, the interbank rate continues its descent. The half-yearly average of this rate, influenced by the evolution of the deposit rate of the European Central Bank (ECB), could be around 2.70% in June 2025. This drop, more pronounced than that of inflation, accentuates the pressure on the fall in savings rates.
Impact on French savings and outlook
If these trends are confirmed, the consequences for French savings could be significant. Current estimates suggest that the Livret A rate could fall below 2% as early as August 2025while the LEP could see its rate fall below 3%.
However, it is essential to note that these projections remain hypothetical. The Banque de France has room to adjust these rates. It could opt for a strict application of the calculation formulas or choose to slow down the decline to protect the savings of the French.
The LEP, although under pressure, benefits from a certain protection linked to the Livret A rate. Its calculation formula, based on inflation excluding tobacco from the previous semester, could theoretically make it fall to 1.44%. However, safeguard mechanisms exist to mitigate too sudden a decline.
Prepare your savings for 2025
Faced with these announced changes, French savers must prepare. Here are some food for thought:
- Diversify your savings so as not to depend solely on regulated savings accounts
- Consider longer-term investments to potentially achieve better returns
- Stay attentive to official announcements regarding savings rates
- Consult a financial advisor to adapt your savings strategy
Note that these changes will also affect pension payments, encouraging retirees to review their financial management.
Although the reduction in Livret A and LEP rates is inevitable in 2025, it is part of a broader economic context of the fight against inflation. Savers will need to adapt to this new reality, while remaining vigilant about the opportunities that could emerge in this changing financial landscape.
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