The Livret A rate raised to 3%, a first since 2009

The Minister thus followed in the footsteps of the Governor of the Banque de France who had offered him this same figure a little earlier, as required by procedure.

Less well known than its predecessor, the Sustainable and Solidarity Development Booklet (LDDS) also benefits from this 3% increase. A saver with 10.000 euros on one of these two products will now earn 300 euros in a full year, against 200 euros at the current rate.

If the calculation formula, taking into account on the one hand the rise in prices - which reached 5,9% in December according to INSEE - and on the other hand the interbank rates, at which the banks exchange short-term money, had been applied to the letter, the rate would even have been increased to 3,3%.

But the governor of the central bank François Villeroy de Galhau preferred to round slightly downwards, citing in a press release "exceptional circumstances".

This small difference deprives holders of a Livret A or an LDDS of 1,5 billion euros in additional interest over a full year.

Still at its lowest level of 0,5% a year ago, the Livret A rate had doubled for the first time on February 1, 2022 and then again on August 1, to reach 2%.

"Pussyfoot"

The approximately 500 billion euros deposited by the French on Livrets A and LDDS accounts are intended in part to finance social housing, the social and solidarity economy or even energy savings in housing.

If the increase in the rate is good news for savers, it is less well received by many public players, whose loans from the Caisse des dépôts (CDC) are often indexed on this rate.

The Social Union for Housing (USH), representing HLM organizations, welcomed in a press release a "balanced" decision, as did the French Banking Federation (FBF), primarily concerned since banking establishments distribute the products of regulated savings.

But by going from 0,5% to 3% in one year, the interest charges of social housing organizations "will be increased by 3,75 billion euros in a full year, very heavily impacting their operating results and their ability to invest," comments the USH.

As for the banks, they fear that the increase "in the passbook A rate will make it very attractive and encourage too many savers to turn away from insurance investments", says Eric Dor, director of economic studies at the IESEG business school. .

Among the returns announced since the beginning of the year by the managers of the euro funds in life insurance, none has actually reached the 3% mark for the moment.

This increase can encourage households to save and therefore "penalize consumption when it is flat due to rising prices", also observes Philippe Crevel, director of the Circle of Savings.

Promoting LEP

The approximately 55 million booklet A, capped at 22.950 euros, were only filled to a quarter of their capacity at the end of 2021, according to the Banque de France.

Possession of People's Savings Accounts (LEP), reserved for the most modest households, is also lagging behind. Despite a record number of new LEPs in 2022 - more than two million - the majority of eligible households have not yet opened one.

The Banque de France claims to "strongly support this instrument". The governor has also chosen to fully apply the formula for calculating the rate, by proposing to raise it from 4,6% to 6,1%, a level not reached for more than 35 years.

"We will be the only country in Europe which will offer its compatriots a guaranteed savings account at a rate higher than inflation", affirmed Bruno Le Maire, encouraging the 10 million or so French people who did not have LEP at the time. that they are eligible, to open one.

The money deposited in this booklet, capped at 7.700 euros, is, as for the Livret A and the LDDS, guaranteed by the State and exempt from taxes and social security contributions.

Only taxpayers are eligible who do not declare more than 21.393 euros for a single person, low-income households who often struggle to save.