Brochure See you soon stronger life insurance in euro, Investment news

This still allows the suspense to hang around a bit. This Wednesday, July 13, François Villeroy de Gallo, governor of the Bank of France, pointed out to Franceinfo’s microphone that the doubling of the livre A rate on August 1 from 1% to 2%is ” possible “. In any case, it is he who will be offered to the Minister of Economy and Finance Bruno Le Maire, the sole final decision maker … and the one who must decide before the weekend.

Twice the interest

This increase in speed is almost historic. ” To have a doubling, you need to go back to the early 60s. “ indicates the Circle of Savings. At that time, it jumped to 3.25% instead of 1.5%, the rate has not changed since 1946! ” Since the early 1980s, there has never been an increase in the score. The most important were held 1uh July 2000 with an increase of 0.75 points. Since 2011, it has regularly declined (to 2.25% in the same year).

Every six months, the Bank of France must take stock. Simply put, the calculation formula takes the average between short-term euro interbank rates (€STR) and inflation over the last half of the year (4.46% between January and June 2022). The formula applied in this way will give a rate of 1.94%, rounded up to 2%. A depositor who has fully replenished his savings account, i.e. 22,950 euros, for the year will earn 459 euros in interest.

Negative real return

But this overestimation, expected by 55 million French people holding booklet A, does not compensate for the galloping inflation estimated by INSEE at 5.5% for 2022! The real return on French preferred investments will remain negative. ” For those who have 10,000 euros on booklet A, the winnings will be only 200 euros. With inflation […]the real loss will be 350 euros in constant euros “ thus illustrates the Circle of Savings.

However, François Villeroy de Gallo excluded ” exceptional gesture It remains to be seen whether the government will still go beyond 2%, who exactly these days is defending in a semicycle his law on purchasing power, the first main text of Macron’s second term.

distressed life insurance

Another atypical situation: at this rate of return, the oldest regulated savings medium of France will become more interesting than life insurance in euro ! Average return on other preferred investments in 2021 reaches 1.28%…” Passbook A rate is twice the average net tax rate for euro funds, which is unprecedented commented Philippe Crevel, director of the Cercle de l’Epargne.

And then what People’s savings book (LEP), another regulated investment whose rate fluctuates mechanically with the rate of livret A. It will be much more “Only 2%,” Francois Villeroy de Gallo warned. And it is not in vain that it should rise from 2.2% to 4.5%, according to the calculation formula. You have to go back to 1998 to find an identical return. Remember that you must not exceed certain income limits in order to be able to open an LEP (€20,297 per person per year).

The popular savings account is an extremely interesting product for the 19 million French people who have access to it, as it is fully protected from inflation. “, – estimated the governor of France on the Franceinfo website. This is not entirely true, if we rely on the INSEE annual inflation estimate (5.5%), but still much more interesting than its older brother booklet A and funds in euros.