Livret A stays at 3%: a thunderbolt for savers!

All options were on the table. But the one that was chosen is the most unexpected. Contrary to all expectations, the Livret A rate, like the Livret de développement durable et Solidaire, will not change from August 1 and will remain at 3%. However, the strict application of the formula, which, in particular, takes into account the average semi-annual inflation, has led to a new theoretical level of 4.1%. Managed thrifts still counted on a derogation from the rule to account for the impact on the economy, with a 3.5% trade-off.

Finally, the public authorities took a more radical decision, the status quo. “We have decided to keep the rate at 3%,” Economy Minister Bruno Le Maire confirmed this Thursday on the set of 13 Hours of TF 1.

To take the pill, the governor of the Bank of France guarantees depositors that this rate will be maintained for 18 months, that is, until January 2025. , had to cut its rate to 5.6%. “We must continue to encourage public savings through the development of LEP,” insists François Villeroy de Gallo, who proposes to raise the ceiling from 7,700 euros to 10,000 euros. And sets a goal of at least 12.5 million LEPs (versus 9.7 million today) for 18.6 million eligible French people.

Up to 230 euros in income loss for the contributor within one year

Not sure if that’s enough to quench the ire of the French booklet A holders and non-LEP holders who have been looking forward to this reassessment. With an average outstanding amount of 5,800 euros, keeping the rate at 3% instead of raising it to 4% means a shortfall in interest of 58 euros per year. If you’re on the €22,950 ceiling, look out for €229.50.

This decision by Bercy and the Bank of France is in any case a relief for the banks and the Caisse des dépôts et consignations (CDC), which manage respectively 40% and 60% of the outstanding amount of livret A (400 billion euros) and the Sustainability and Solidarity Booklet (142 billion euros). ). Thus, for the full year, a 1 percentage point increase in the rate would cost banks almost 2.2 billion euros. Insurance companies could also fail even if the record collection recorded in livre A was rather from checking account transfers and that there was no “cannibalization of livre A life insurance”, as we explained to Franck Le Vallois, managing director of France Assureurs.

Relief is even more on the side of social housing. With the transition to 4%, social landlords who have 140 billion in debt to the CDC through floating rate loans indexed to livret A will also see their interest payments increase by 1.4 billion euros per year. The same for local governments and small and medium businesses. Eric Lombard, managing director of the CDC, also pleaded over the weekend for the passbook rate to remain locked in at 3%: “Since inflation is temporary, it would make sense that this effort should be sought from savers to support social housing. and local development. Finally, his arguments were heard.