Since last February, the yield on Livret A has been 3%. The enthusiasm of individuals is enormous and they are right: the rate of this guaranteed investment is not very high, even after 15 years. Why deposit as much money as possible before the end of April?
The craze for Livret A has been very strong since 2009. With this investment rising at a net 3% per annum, on February 1, 2023, the French will not hesitate to deposit as much of their savings as possible. And they are right. The savings account shows this after collecting 6.27 billion euros in February A new positive collection of 4.17 billion euros at the end of March 2023.
The figures reported by the Caisse des Dépôts are staggering and are realized in the LDDS or LEP, a popular manual whose rate is guaranteed and which pays 6.1% net per year. In all likelihood, these investments guaranteed by the French government should again generate significant positive inflows in April. But why fill these booklets to the max by the end of the month?
Fifteen days rule for storage
The policy applied to savings accounts guaranteed by states varies from one country to another. In France, we apply Fifteen days rule for booklets guaranteed by the Government. The interest generated on the capital is calculated twice a month and should be taken into account to increase the profit from the investment. In fact, the capital must be kept in Livret A for at least one fortnight (from 1 to 15, or 16 to 31) of a month to be paid.
In other words, you will earn interest only on the amounts deposited from the first day of the fortnight. If you want to achieve the 3% net annual rate from May, you must deposit it by April 30. If you deposit your money in Livret A on May 2nd, you will not be paid until the 15th of the month. In the second fortnight, i.e. from 16th to 30th, you can earn interest on your capital.
Do you have a regulated savings account? From February 1, 2023, all booklets will be upgraded. https://t.co/RV8duDjYkm Tell me more.
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So the same rule logically applies to withdrawals: you must remember to complete one of these two fortnights to earn interest on your capital. If you withdraw your money on the 10th of the month, your Livret A will not earn interest for the period from the 1st to the 10th. The savings they invested.
Although France has adopted this model, it does not apply to all countries. Some pay capital from the first day of investment. The great advantage of Livret A is that the money is available at all times. So you can withdraw your capital without any notice, which is practical in case of emergency. At the same time, blocked savings investments like term accounts offer very attractive returns.
A popular and generous savings investment
If the Livret A rate does not increase in May (when it should, acc Squeeze the lemon), which is still an attractive guaranteed investment today. However, taking into account inflation of 5 to 6% over the past year, its real rate of return remains negative, according to INSEE figures. That doesn’t stop the Livret A from being anchored in French tradition: more than 55 million of them own one. It is impossible to connect them.
In the last days of every month, the number of Livret A (and LTDS) deposits increases to improve the return on investment and not to be fooled by the fortnight rule. If you want to get all the salary in the next month, you have to make yourself active in the coming days. Leave only the minimum amount in your checking account to cover daily expenses because it’s unpaid – so you won’t get anything out of it.