Home » Business » Everything you need to know about the Livret A: the 7 figures you need to know about the regulated savings star passbook

Everything you need to know about the Livret A: the 7 figures you need to know about the regulated savings star passbook

news">

(Photo credits: Adobe Stock – )

Livret A is the star placement of the French. Little remunerative but without any risk, it attracts individuals who can place funds there and make withdrawals when they wish, being sure to always find the sums deposited intact, with a remuneration, low certainly but a remuneration all the same. So, should we be tempted by this investment? Discover 7 figures to know about the Livret A which could well encourage you to open this savings medium or increase the deposits on it if you already have one.

54.9 million: the number of booklets A held by the French

As of December 31, 2021, there were 55.7 million Livret A savings accounts in France held by natural persons according to the 2021 annual report on regulated savings, published by the Banque de France in July 2022. This still corresponds to 80, 9% of the French population! The Livret A booklet is therefore widely acclaimed by the French, adults and minors alike.

2: the Livret A rate since August 2022

The Livret A rate is set by decree by the government. It is supposed to follow inflation but in fact the calculation formula has often been revised to reduce the rate served. Since August 1, 2022, the Livret A rate has been 2% when inflation over one year on that date was more than 5%. This revaluation from 1% to 2% has, however, led to renewed interest in this investment, which has seen its interest rate approach the rate paid by the best euro life insurance funds.

3: the Livret A rate from February 2023

The Livret A rate, taking into account inflation, will increase on February 1, 2023 to the rate of 3%. This new rate should arouse real household interest in this investment. It could indeed call into question the usual arbitrations of households in terms of savings, which could place the money kept in their current account on this envelope and who could also abandon the euro life insurance fund in favor of the Livret A account. .

Read also: Rate of the booklet A raised to 3% on February 1: will the French massively arbitrate their savings?

0: the amount of tax on interest

Remember that the livret A is a tax-free regulated savings investment. It is both exempt from capital gains tax and social security contributions. Thus, the gains made with the booklet A are not taxed. This is also the case for LDDS, for example. But the gains made on envelopes such as the PEL and the CEL are taxed at 17.2% (social levies) while the gains made on the euro fund of a life insurance are also taxed according to anteriority of your life insurance.

10: the minimum payment amount in euros

It is possible to open a livret A with an amount of 10 euros. Then, the payments can be punctual or regular and their amount is free. There is no minimum payment per year as is the case with certain envelopes such as the PEL.

22,950: the ceiling of this envelope

The Livret A account has a payment ceiling of 22,950 euros. But the sums held on this envelope can be much more important because the capitalization of the interests can carry the balance of the booklet well beyond. However, this ceiling remains a strong constraint that does not exist on the taxed booklets or the euro life insurance fund.

459: the annual remuneration of this investment if it is filled

With a rate of 2% and a ceiling of 22,950 euros, the booklet A, if it is filled, allows you to receive 459 euros net since the investment is exempt from taxation on capital gains and social security contributions.

With a rate of 3%, a completed booklet A allows its holder to receive 688.50 euros per year.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.