As you know, inflation creates a mechanism of reassessment of savings solutions. This is the case of the rate of the booklet A which will be greatly increased from February. Indeed, it goes from 2 to 3%. Behind this good news, there is still two bad financial news. We explain everything from A to Z!
Livret A: Bruno Le Maire reveals the final rate from February 1
We pay attention to the validation of the rate of increase of the booklet A and Bruno Le Maire has just confirmed it. Indeed, last Friday, the Minister of the Economy, officially declared the future rate of the booklet A from February 1st. It’s an announcement that made pla*s*r to nearly 55 million French people who have this savings solution. It’s a simple and flexible way to invest your money. You can always use the money in case of hard knocks and there are no fees. With galloping inflation, this is the third time that the yield on the livret A has increased in barely a year. But, then, what hides this revalorization?
One good surprise, but two bad surprises
The first bad news is that owners of booklet A could have benefited from an even higher rate. Indeed, in theory and based on the calculation formula, the Livret A rate should have been 3.3%, or even 3.5%. But, the government wanted to keep a little budget for the whole part of social housing. This is partly financed by the resources of the booklet A. Therefore, the Banque de France advised Bruno Le Maire not to go beyond 3% of remuneration.
“ One too high a rate would be very unfavorable to this key sector for our social cohesion and our economic activity “, informs the Banque de France in an official press release. Inevitably, the Minister of the Economy followed his recommendations. It is true that between a rate of 3% and 3.3%, there is not much difference, but the situation is very delicate for the French who are looking for the least savings. Indeed, we have just recently learned that after the increase in electricity, gas and fuel, the water would also be increased.
Too high a salary would be unfavorable
The second bad news is that the remuneration of the booklet A is not sufficient, even negative since the rate is well below the rate of inflation. ” Over the whole of 2022, taking into account the increases in investment remuneration, the average rate of the Livret A was 1.3%, i.e. less than inflation which amounted to 5.2%. The real return was therefore negative by nearly 4% (3.83%). You have to go back to the 1980s to find such a negative return. Moving to 3% on February 1 with inflation expected at 5.5%, the actual return should of the Livret A savings account to remain negative but to a lesser extent than in 2022 “, details Philippe Crevel, the director of the Circle of savings. Even if the purchasing power of households is at its worst, this increase is still good to take.