The decision disappointed savers. Contrary to expectations, the rate of return of the Livret A, which should have risen to 4.1% on August 1 if the traditional calculation formula had been respected, will remain locked at 3% until… 2025. A choice of the Banque de France and the Ministry of the Economy in order not to penalize the financing of social housing.
Liquid and risk-free, the Livret A book still holds its interest. But other investments with similar characteristics can also allow you to grow your savings without fear of losing your investment. Starting with the Popular Savings Book whose remuneration is set at 6%. However, particularly interesting, the LEP is reserved for low incomes and its ceiling is limited to 7,700 euros. In addition, among the holders of this popular savings account, 47% had a higher balance at the end of 2022, due to accumulated interest.
Other risk-free investments also include the Housing Savings Plan (PEL) and life insurance in euro funds, each with its advantages and disadvantages. Long forgotten, another savings product is getting a second life since rising interest rates: the term account.
What is the term account?
The CAT is a savings account with guaranteed capital, therefore risk-free, offered by banks. After many times, this placement is not awarded, like the Book A, doped by the house of taux d’intérêt gagne in popularity with a total encours of 114 million euros in June, against 80 million in January, according to the Bank from France.
Any adult can open one, without having to pay any fees either when signing or afterwards. The contract drawn up by the bank must mention the period during which the savings will be blocked (between one and three years on average), the minimum and maximum payment amount, as well as the interest level.
Please note that no additional payment to the initial deposit is possible during the term of the contract. In theory, withdrawals are also prohibited: the amount placed at the opening is immobilized in the account until maturity. However, a saver who needs to get their bet back sooner than expected can call it back, but this will result in early exit penalties on payout as well as account closure.
What compensation?
Interest rates for futures are set by banks. There are several contracts: fixed rate, progressive rate (remuneration progresses over time) or variable rate.
With the rise in rates, some establishments are currently offering much more attractive returns than a few months ago. Distingo Bank, for example, promises its clients who already have a savings account with it a gross remuneration of 3% for opening a “Green” term account with a 10-month commitment period. For a minimum payment of 1,000 euros, the bank also offers slightly longer term accounts and therefore better remuneration: one year (3.1%), 2 years (3.15%) or 3 years (3.2 %).
For its part, Boursorama offers its clients a CAT with a gross annual rate of 3% for 12 months and 3.5% for 18 months for a minimum deposit of 5,000 euros, with no payment limit. Monabanq clients can opt for a term account at a progressive rate with gross interest of 1.5% the first year, 2.5% the second, 3% the third, 3.5% the fourth and finally 4.5 % the fifth year. On the condition of paying at least 3000 euros in the subscription.
What taxes?
Knowing that slowing inflation is likely to lower the rate of the Livret A from 2025, opening a CAT whose profitability is known in advance may prove to be a winning bet, provided you are willing to tie up these savings for a period of time.
However, it is preferable to consider the term account as a complementary product to regulated savings accounts and not as an alternative. Because unlike the Livret A or the LEP, the interests of the CAT are taxed. These are subject to the single flat-rate deduction (12.8% for income tax and 17.2% for social security contributions) or to the progressive scale of income tax if this option is more advantageous. .
Source: BFM TV
