salary revised upwards, what increase can you expect?

You will be pleased to hear that the rates for booklet A will be revised upwards again. Unheard of in the history of this savings account. The first increase, in fact, took place only two months ago and on May 1st he will see his salary increase again. The main reason is the inflation which continues to rise due to the conflict between Ukraine and Russia.

Booklet A: two good news in two months!

At the moment, each of us has a libretto A. Other by tradition and reflection. In fact, it costs nothing, but it doesn’t bring much either. This remains a practical way to put your savings aside and be able to recover them at any time for free. That is to say, it is not possible to combine several Livret A accounts in several different banks. Furthermore, the maximum amount you can deposit is raised to € 22,950.

Bruno Le Maire, Minister of Economy, had recently announced the increase as well as for the LEP Livre d’Épargne Populaire. Both had seen their rates rise. While it still wasn’t great, it’s better than nothing. Indeed, in these times of crisis, the minimum savings are good to take. In fact, prices are skyrocketing in all other areas of life: fuel, electricity, gas, some groceries, etc.

A calculation that is made twice a year for the Livret A

For information, if you don’t know, the rate for this booklet A is calculated twice a year, but hasn’t changed for 10 years. To make this calculation, the experts rely on an average between the average inflation rate of the last six months and also the average interbank rates (short-term money exchange). By the end of 2022, the French are expected to recoup a little more funds from their savings.

A second hike eagerly awaited!

We recall that on 1 February 2022 we learned that the Livret A rate had doubled. It had gone from 0.5% to 1%. But, given the current very complicated environment for the French, the Banque de France is considering making a second raise. This new measure could bring the figure to 1.25%. This push is starting to get interesting!

In any case, this will be a great first in the history of the Livret A. Indeed, as explained above, the rate of the livret A as well as the Livret de développement duravole et solidire (LDDS) cannot be changed only twice a year in course, on February 1st and August 1st. For once, the Banque de France will deviate from the rule and make a raise outside these dates.

More flexible rules due to the war

On the other hand, from July 2021, the Governor of the Banque de France has the possibility to advise an early modification of the interest rate of the livret A. Namely, May 1 and November 1. Indeed, depending on the context of the emergency, the rules have been loosened. And this is especially true of the situation in Ukraine, if “the change in inflation or money markets is very large”, we can read on the official website of the Ministry of Economy. According to an INSEE study published last March, prices have risen by 4.5% in just one year. A staggering increase that worries the French.

For information, 54.9 million people have a Livret A in France. On average, the French have 5,500 euros in this savings account. It is the third favorite investment by the French, certainly for its flexibility and practicality but certainly not for its remuneration. In any case, we look forward to the second increase!

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