Discover the latest updates on risk-free savings rates, including stable yields for Livret A and LDDS at 3%, and a standout 4% for LEP. New housing savings plans (PEL) opened in 2024 will offer a gross yield of 2.25%, subject to a 30% flat tax. Life insurance options include euro funds averaging 2.60% gross yield. Understanding inflation is essential, with November’s inflation at 1.3% and a projected 2% for 2024, impacting purchasing power.
Is Your Memory Failing? Discover Current Savings Rates!
If you’re struggling to recall the yields on a Livret A, housing savings plan, or euro fund from life insurance, you’re not alone! To help you stay informed, we present a monthly barometer of risk-free savings, offering a clear snapshot of your options. Here’s the latest update for December, which remains consistent with November, as we gear up for potential changes in 2025.
Overview of Regulated Savings
The Livret A has maintained a stable yield of 3% since February 2023, ensuring that you can enjoy tax-free interest until February 1, 2025. Similarly, the social and solidarity development savings account (LDDS) also offers a 3% yield. For those who qualify based on income, the popular savings account (LEP) stands out with an impressive rate of 4%.
As for the housing savings plan (PEL), new accounts opened in 2024 will secure a gross yield of 2.25% throughout the plan’s lifespan. However, keep in mind that it is subject to a “flat tax” of 30%, which translates to an effective rate of 1.58% after taxes.
Exploring Traditional Bank Savings Accounts
For insights into selecting the most beneficial bank savings accounts, check our detailed comparison methodology.
When it comes to term accounts, if you can afford to set aside funds for several months or years, you might find better returns than those offered by standard savings accounts. These accounts provide a guaranteed fixed return for a specified duration. Currently, term accounts with a duration of two years or less yield an average of 3.51%, according to the Bank of France.
Despite a decline in yields, the most appealing rates for new term accounts are now falling below this average, largely influenced by previous subscriptions. For instance, Distingo currently offers a 3% return, or 2.10% after the flat tax for a 12-month term.
Understanding Life Insurance Options
If you hold a life insurance contract, it typically consists of a “euro fund” component, which guarantees your capital, functioning much like a savings account that accrues annual interest. There is also a “unit-linked” component where your investment can fluctuate based on market performance.
For the “risk-free” euro fund, the average gross yield for 2023 was 2.60%, while the expected average for the current year is 2.50%.
Inflation Insights: What You Need to Know
When assessing the yield of risk-free savings, understanding inflation is crucial. Why? If your interest rate falls below the consumer price index, your money gradually loses purchasing power. Here are key statistics from Insee to keep in mind:
- Monthly inflation stood at 1.3% in November (comparing prices from November 2024 to November 2023) based on preliminary data.
- Estimated annual inflation is projected at 2% in 2024 (comparing average prices for the entire year of 2024 to those of 2023).