Bruno Le Maire announces, Thursday, July 14, the doubling of the rate of Book A, from August 1. “It will go to 2%”explains the Minister of the Economy in an interview with Parisian. “The popular savings account rate (LEP) will go from 2.2% to 4.6%.”
Bercy therefore chooses to follow the proposal of the Banque de France, in charge of calculating the Livret A rate each semester. “make it possible to support the remuneration of savers in the face of rising prices”said a statement from the central bank.
Lower than inflation
A savings product held by the most French people, the Livret A account has its rate calculated automatically twice a year. The calculation formula takes the average between, on the one hand, the average inflation rate of the last six months and, on the other hand, the average of the interbank rates, at which the banks exchange short-term money . This was applied to the letter, specifies the Banque de France.
In February, the remuneration of the Livret A had already doubled, going from 0.5%, a historic low, to 1%. While this increase may seem like good news for French savers, it should not make us forget that the rate, even when revalued, will remain very much lower than inflation, measured by INSEE at 5.8% over one year in France in June.
According to the minister, “LEP is the most effective investment to protect against inflation”. The People’s Savings Account, who sees his rate revalued to 4.6%, is reserved for people with incomes not exceeding certain ceilings (20,297 euros per year for example for a single person).