Livret A, LEP, LDDS… All the increases expected this summer

It’s hard to ignore inflation. For months now, it has been mentioned everywhere. On all television sets, radios, in the columns of written press titles… More generally, it is also observed by all French men and women as soon as it is necessary to fill the shopping basket. From May 2021 to May 2022, over one year therefore, consumer prices rose by 5.2% according to the latest estimates published by the National Institute of Statistics and Economic Studies (Insee) this Wednesday, June 15 2022. Since very many savings products are unable to offer such a high remuneration, we will therefore have to reckon with a net loss of purchasing power, as Nathalie Cariou has already explained in our columns.

This is unfortunately the case for all holders of a Livret A, which still represents 55 million people in France, underlines Capital.

Fortunately for these savers, continue our colleagues, the situation could change in the weeks or months to come. And for good reason ! The formula for calculating the yield of the Livret A, as well as many other products derived from its root, mechanically integrates inflation into its equation. In addition, interest rate hikes are scheduled several times a year: first in January, then in August. What to reassure the French and the French worried about their stockings? Maybe.

In fact, our colleagues report, at least three investments should see their rate of return increase. This is obviously the Livret A, which today shows a very negative profitability (-4.2%), but also two of its close cousins:

More information about this in the rest of our article.

As things stand, the rate of return on the Livret A is limited to 1% after an initial revaluation at the start of the year. That being said, the strong surge in inflation could justify its increase: it is inflation that must serve as the basis for calculating the new rate of return.

According to Capital’s calculations, it seems legitimate to hope for a revaluation of around 2%, given the average inflation observed in recent months and interbank rates. The same goes for the Sustainable and Solidarity Development Booklet (LDDS).

Other small products are also expected to grow, although potentially less impressively. The CEL, LEE and PEL could also see their performance increase.

It is clear that in terms of regulated savings, the People’s Savings Account (LEP) is the king. It is regularly more profitable – significantly! – than the rest of the products available to most French people. Main fault ? It is quite difficult to access, since it is necessary to be able to justify very strict conditions to claim it.

The game is worth the candle, however, recalls Capital, since its rate is equivalent to that of the Livret A, but increased. Normally, you just have to add 0.5 points. However, when inflation exceeds this value, it is this which is used as the basis for the calculation. Consequently, it should climb by 2.30 points and post a yield of 4.50% according to our colleagues.