As a result of the inflation of recent months, the rates for regulated savings accounts (Livret A, LDDS, LEP) should be raised on August 1st. What are the expected rates?
An inflationary context
This will not have escaped your notice: prices have not stopped rising in recent months. Over the past year, the inflation rate reached 5.20% according to INSEE. A level that we had not seen for almost 30 years. If this is not good news for the wallet, it is not good news for savers either. Indeed, the real rate of return (i.e. the remuneration minus inflation) of risk-free assets such as the livret A is largely negative: if the remuneration of the livret A is 1%, its rate actual return is -4.20% (1.00% – 5.20%). Same phenomenon for the LDDS (sustainable and solidarity development booklet) which pays like the booklet A. As for the LEP (popular savings booklet), its current remuneration is 2.20% but its real rate of return is – 3%. .
In this inflationary context, the rate of return on regulated savings accounts (passbook A, LDDS, LEP) should be revised upwards on August 1st. This is what the Governor of the Banque de France, François Villeroy de Galhau, suggested a few days ago, without however giving any information on the future rate.
The expected rate for the livret A and the LDDS
The yield rates of Livret A, LDDS and LEP are regulated and inflation is an important factor that comes into play in the calculation of the rate. For the Livret A account, it corresponds to the half-yearly average of the inflation rate and short-term interbank rates (EONIA), rounded to the nearest tenth of a point. It cannot be lower than the floor rate of 0.50%. The government has the possibility of increasing the rate if it deems that the circumstances require preserving the purchasing power of savers. It makes its decision after consulting the Governor of the Banque de France.
According to INSEE forecasts, the inflation rate for June 2022 should be around 5.40%. This would bring the half-yearly average inflation rate to 4.48%. The half-yearly average of short-term interbank rates should land around -0.57%. If the formula is applied, the rate of the livret A should therefore be increased to 2.00%, just like that of the LDDS.
The expected rate for LEP
The rate of the LEP (popular savings account) is equal to the rate of the Livret A, increased by an increase. The LEP remuneration is expected to rise from 2.20% to. 4.50% on August 1st. As a reminder, the LEP is aimed at French people whose resources are limited: its opening is subject to a ceiling of resources. It is capped at 7,700 euros.
The expected rate for the CEL
The rate of the CEL (housing savings account) is equal to 2/3 of that of the Livret A, rounded to the nearest ¼ point. The CEL rate should therefore drop from 0.75% to 1.25% on August 1.
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