With the fall in inflation and a slight rise in interest rates, what return can we expect for risk-free investments in 2025? (Photo credit: Shuterstock)
Livret A, PEL, life insurance… while inflation is falling and interest rates are rising slightly, what return can we expect for risk-free investments in 2025?
Livret A and other regulated booklets
The Livret A rate is set according to a calculation formula which depends on inflation and short-term interbank rates. It cannot fall below 0.50%. It can be revised twice a year: February 1 and August 1. The final decision to revise the Livret A rate rests with the government, on the recommendation of the Banque de France. Thus, the government froze the Livret rate at 3.00% from February 1, 2022 to January 31, 2025, in order to preserve the purchasing power of French savers in a context of a sudden increase in inflation.
In 2023, the livret A returned 3.00%, but with annual inflation of 4.90% (according to INSEE) its real return was negative. In 2024, inflation rose to 1.30%, allowing the Livret A to return to positive real yield. Concerning 2025, Eric Lombard, the new Minister of the Economy, recently announced that the Livret A rate should drop to around 2.50% on February 1.
Concerning other regulated savings accounts, the rate of the LDD (sustainable development savings account) will follow that of the Livret A. The rate of the LEP (popular savings account) which reached 6.10% at the start of 2023, should increase from 4.00% currently to 3 .00% on February 1st.
Le PEL
The PEL is a regulated savings product. Its rate is fixed at the time the account is opened and it is guaranteed for the duration of the plan. For PELs opened since January 1, 2025, the rate is 1.75% (compared to 2.25% for PELs opened in 2024).
The PEL also makes it possible to obtain a loan to finance a real estate project. The loan rate is also set at the opening of the plan: it is 3.45% for PELs opened from January 1, 2024.
The life insurance euro fund
In January 2025, insurers announce the return on the funds in euros of their life insurance contracts for the year 2024. The average return for 2024 is expected to fall slightly, around 2.50%, compared to 2.60%. in 2023 (according to the ACPR). If all insurers have not yet revealed the yields, the 2024 rates announced to date vary from 2.25% to 3.75%. To know the 2025 rates of return, you will have to wait until January 2026. However, some insurers are now offering yield bonuses based on the 2025 rate of return of up to +2.00%.
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