Inflation and rising interest rates put the livret A into orbit.
In February, the French again massively placed their woolen socks on the Livret A and on its little brother, the Livret de développement durable et solidaire (LDDS).
Net collection (deposit minus withdrawals) soared for these two products to 8.17 billion euros: 6.27 billion for the Livret A, 1.90 billion for the LDDS.
Over the first two months of the year, net inflows for these two products reached nearly 20 billion euros.
commented Philippe Crevel, director of Cercle de l'épargne.
The announcement of the increase in the remuneration of the livret A from 2 to 3% on February 1 hit the bull's eye with households. Rate increases always result in a collection surplus, the month preceding the increase, and the two or three next month.
But the phenomenon has been amplified by the fear of inflation, which cuts into the returns
“Obviously, that translates into collection.”
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Big winner from the rate hike
Despite inflation, which undermines the household budget, the French keep an ant behavior.
“The savings rate remains high, even if it is a little lower than in 2020 at the time of the pandemic
”, confirms Cyril Blesson, associate economist for the firm Pair Conseil.
And few investments do better than the A side performance booklet.
This savings product held by nearly 55 million French people is now doing better than most other risk-free investments (euro funds, term accounts, demand deposits, etc.).
And what does not spoil anything, the remuneration offered is also tax-exempt, liquid and totally net of costs.
The French arbitrate, continues Cyril Blesson.
We are coming out of a long period where remuneration was low for risk-free investments.
This has long benefited demand deposits.
The rise in rates reshuffles the cards in favor of the Livret A account.
This appetite for the booklet A should continue in the months to come.
The calculation of the Livret A rate is linked to the rise in prices, and this could continue for a while.
Some economists are also counting on a yield on the Livret A account close to 4% in August.
However, this decision remains political.
The increase in the rate is made on the proposal of the Governor of the Banque de France, but it is Bercy who decides.
The calculation of inflation had resulted in a rate of 3.30%.
The Ministry of the Economy had finally decided for a rate of 3% so as not to penalize HLM organizations, for which the Livret A is a financing tool.
The Pair Conseil firm thus anticipates an annual collection of around 60 billion euros for 2023, well beyond the 2012 record (49 billion euros),
The ceilings (22,950 euros) are not really an obstacle to collection since each person in the household can hold this booklet.
The same goes for the LDDS (12,000 euros maximum) which has the same characteristics as its big brother.