This is good news for savers at the start of 2023, the increase in the rate of remuneration of the livret A, to an unprecedented level since 2009, will do good for the morale of the French people hit hard by the inflation which amounts to 5.9% in France for the year 2022. This is also the main explanation for this meteoric rise. So without further ado, optimize the feeding of your booklets as well as possible.
Anyone can hold a booklet A, there is no condition of age, nationality, or tax residence in France. According to the public service website, the livret A is a remunerated savings account whose funds are available at any time. Interest is exempt from income tax and social security contributions. All banks can offer it. The booklet A ceiling is set at €22,950 for individuals.
But why panic? Because the calculation of interest on regulated booklets works according to the so-called “fortnightly” principle. This means that a payment made between the 1st and the 15th of the month does not start earning interest until the 16th.
According to the Moneyvox site, if you wait until February 1 to credit your Livret A, the added sum will only generate income from February 16. Do not wait: with a Livret A at 3%, a payment of 1,000 euros produces 1.25 euros in interest every fortnight. Also, with a rate of 3%, individuals with a booklet A up to a ceiling of €22,950 can obtain €688.50 in interest over one year.