As inflation continues to eat away at the wallets of the French (6.1% in July for all of 2022), this Monday’s hike in the Livret A rate from 1% to 2% didn’t just come. This was accompanied by an increase in other bank investments. Sustainable and solidary development booklet (LDDS), People’s savings booklet (LEP), youth booklet, etc. 20 minutes takes stock of the increase in regulated savings rates.
Brochure Sustainable and solidary development
On August 1, 2022, the Sustainable and Solidarity Development Booklet (LDDS) increased by 1% to 2%, as did the Livret A. As a reminder, its ceiling is 12,000 euros, excluding interest paid by the bank, and that can be it with it combined.
Good news for young savers aged 12 to 25: The remuneration for young savings accounts will also be increased. Unlike the others, the state does not intervene in its interest rate and leaves the responsibility to the banks. On the other hand, this rate must not be lower than that of booklet A. It is therefore also increased to at least 2%. The upper limit is 1,600 euros.
People’s Savings Account (LEP)
This is the “most effective investment to protect savings against inflation”, assures Bruno le Maire, Minister of Economy and Finance. And it’s also “fully protected against inflation,” which is what it’s indexed to, according to François Villeroy de Galhau, governor of the Banque de France.
The LEP, presented by the government as a weapon against the general increase in prices, received the largest wage increase on August 1st. While it was still 2.2%, the rate on the people’s savings book officially fell to 4.6% on August 1, 2022. The opening of an LEP is linked to residence and income conditions and is 7,700 euros.
Crédit Mutuel blue booklet
Livret Bleu is only sold by Crédit Mutuel. It works almost like the Livret A, with the difference that it is managed directly by its bank. As of August 1, his pay rate also increased from 1% to 2%.
Building savings account (CEL)
The residential savings account can be revalued twice a year, on February 1st and August 1st, based on 2/3 of the Livret A. Earlier in the month, the CEL rate fell from 0.75% to 1.25%. The accumulated savings, which are immediately available, unlike a PEL, make it possible to obtain a home loan or a work loan and a government bonus under certain conditions.
The Building Savings Plan (PEL)
It has become the bad savings plan while traditionally it is very used by the French. The housing savings plan was not entitled to an upgrade. The rate, set at 1% for six years, was not increased on August 1, 2022. The fee for this issue, which is limited to 61,200 euros, could still be increased, but this will not take effect before 2023.