Savers deposited in Livret A savings accounts in January 9.27 billion euros more than they withdrew, the Caisse des dépôts (CDC) said on Tuesday, the highest amount in 14 years for a first month of the year, stimulated by the announcement of a 3% rate.
The accumulated balances of the Livret A, the preferred investment of the French (55 million people have one) and the Livret de développement durable et solidaire (LDDS) reached the sum of 520.9 billion euros on January 31, according to reports. Only the LDDS increased by 1.950 million euros net last month.
Traditionally associated with New Year’s gifts, bonus payments and a time of lower spending in contrast to the month of December, the first month of the year is generally propitious for the collection of regulated savings accounts.
Even more so after the Minister of the Economy, Bruno Le Maire, announced in mid-January an increase in the rate of remuneration for these two booklets, from 2% to 3%, effective as of FEBRUARY 1. A good reason to move part of the approximately 700,000 million euros dormant in current accounts in France, according to the latest figures from the Banque de France published this Tuesday and closed at the end of September.
Social housing
Competition is struggling to keep up: among the returns announced since the beginning of the year by euro life insurance fund managers, none has reached 3%. The money deposited in the Livret A and LDDS booklets, with a maximum of 22,950 euros and 12,000 euros without capitalized interest, is guaranteed by the State, exempt from taxes and social security contributions.
Managed jointly by the Caisse des dépôts and the banking networks, the Livret A is mainly used to finance social housing.
Source: BFM TV
