Is the “rate effect” losing strength? The growth of the outstanding balance of Livrets A and LDDS was divided by four in September in a year and compared to the previous month, falling to its lowest level since October 2022. Savers deposited last month in their Livrets A and in their Sustainable and Solidarity Development Accounts. (LDDS) almost 730 million euros more than they withdrew, the Caisse des Dépôts (CDC) announced on Monday.
This amount is four times lower than the previous month (+3,020 million euros), the month of July (+3,130 million) or even the month of September 2022 (+3,140 million), a clear slowdown that is explained by a fading of the unexpected effect of a 3% rate, maintained at this level for 18 months since August 1.
Back to school
“The French who could fill out their A notebooks have filled them out,” observes the founder of the Facts & Figures company, Cyrille Chartier-Kastler, interviewed by AFP, “those who have money available are now turning to other investments.” Livret A holders cannot deposit more than 22,950 euros. Competition from products with guaranteed capital such as term accounts, as well as the persistence of inflation, which reduces the saving capacity of households, are also factors that explain this slowdown.
“After the holidays, households resort to their savings to cover a series of expenses and, in particular, those related to the start of the school year,” underlines Philippe Crevel, director of the Círcle de la Épargne. The net collection, however, is still higher than that of life insurance funds in euros, other savings products with guaranteed capital but less remunerative, whose slow hemorrhage began at the end of 2019.
Overtaken by the LEP
The Livret A (+ approximately 450 million euros last month) is surpassed for the first time this year by the Livret d’épargne populaire (LEP), which grew by 800 million euros last month, according to the CDC, which publishes monthly data about this product for the first time.
The LEP, reserved for the most modest households, is based on its remuneration rate of 6% net. October promises to be even more favorable for him, since the maximum limit of the LEP will increase from 7,700 euros to 10,000 euros. Almost 10 million people had an LEP as of July 31, and the total amount outstanding as of September 30 amounted to €59 billion (+€11.1 billion since the beginning of the year), according to the latest figures available.
The accumulated outstanding balance of Livret A and LDDS has reached the record level of 551.1 billion euros, increasing by 41.4 billion euros since the beginning of the year.
Source: BFM TV
