Number 1 investment of the French, passbook A represented more than 343 billion euros at the end of 2021, according to the Observatory of regulated savings. It must be said that 55 million people own this regulated savings product, the average residual amount of which is estimated at around 5,800 euros per savings account!
In detail, 8% of the holders, on the other hand, have 32% of the funds depositing – more than reasonably – their money in this certainly safe but also very low account.
Flexibility and security
If this savings product is tempting, it is because it has many advantages: anyone aged 16 and over can open a savings account (and only one) at any bank. He can therefore deposit but also freely withdraw his money as he sees fit, within the limit of a high ceiling set at € 22,950 for individuals (excluding the calculation of capitalized interest).
However, the money saved in this way is not only exempt from any taxation but also the capital is guaranteed, which avoids any risk of loss. Faced with the well-known reluctance of the French in terms of financial risks, this precautionary saving therefore enjoys a general plebiscite.
Don’t abuse it
But this national craze omits one major drawback: its pay rate. Because if livret A had its heyday reaching over 8% interest in the 1980s, since then its yield has plummeted to the point of becoming non-existent, despite several reforms of its way of calculating.
From 2020, the interest rate is thus obtained from the average of short-term interbank rates and inflation over the last six months. However, at that date, this savings product was only paying 0.50%!
Faced with runaway inflation, the rate then rose to 1% in February 2022, and then dropped to 2% on August 1, 2022.
But this is still not enough for it to be financially attractive, as Thomas Perret, the founder of fintech monpetitplacement explains: “The delta between this new rate for Livret A at 2% and the inflation rate at 5.8% still shows a loss of purchasing power of almost 3.8%, if the French leave all their savings in this booklet ”.
As a precautionary saving, this account should in fact only be used to compensate for difficulties and to finance small pleasures. Therefore, it is advisable not to leave more than two or three months of salary there and diversify the rest of your savings through products with a higher yield.