Good news for savers. In accordance with the recommendation of the Banque de France, the rate for Livret A goes from 1 to 2% on Monday. The calculation of the rate of return on this investment in the hands of more than 55 million French people is based on the short-term average interbank rate and the level of inflation, which has continued to accelerate in recent months (6.1% in July more than a year).
This new rate means that an A booklet opened on August 1 with, for example, 1,000 euros will yield 20 euros after a year, compared to the previous 10 euros. To find out how this translates to your finances in practice, you can use the calculator below.
A further increase is expected
Be careful though, these results are only valid for a prospectus whose capital would not have changed in a year. On the contrary, if changes are made during the year, the compensation will change. Banks calculate the interest they generate fortnightly (24 fortnights in the year), that is, twice a month. Therefore, each withdrawal or deposit has an impact on the remuneration paid after one year.
It should also be noted that if we look at the period January-December 2022, the remuneration of livret A will be lower than that of the period August 2022-August 2023. And rightly so, the rate applied was only 0.5% in July and 1% between February and August. Additionally, our calculator assumes a fixed payout rate of 2%. However, a new rate hike is more than likely in the coming months, given the level of inflation. .
Be that as it may, the real performance of livret A is still negative since the inflation rate of 6.1% in July for a year remains above the new 2% payout rate. In other words, the money placed in booklet A loses its value.
Source: BFM TV
