How does the A booklet work?

Dimitri Vernet and Noa Moussa, edited by Ugo Pascolo with AFP

This is one of the investments that the French prefer and which often acts as a safety cushion in the event of a hard blow: the livret A. But how is its rate calculated, what are its characteristics? Europe 1 takes stock of this very popular savings which concerns 56 million French people.

One of the favorite investments of the French will bring in a little more. François Villeroy de Galhau, Governor of the Banque de France, announced on Tuesday that the Livret A should see its interest rate, currently set at 2%, increase “significantly” on February 1, 2023. But what is its rate? ? What are the characteristics of this savings? Europe 1 takes stock.

A ceiling of 22,950 euros

The livret A was created in 1818 to deal with the financial crisis bequeathed by the Napoleonic wars. Today, it is one of the favorite savings products of the French behind life insurance. There are nearly 56 million in France, where sleep nearly 370 billion euros. Each booklet A is capped at 22,950 euros.

These savings are largely managed by the Caisse des Dépôts, which lends money to social landlords for the construction of social housing, and to local authorities who use it to build hospitals and renovate schools. The passbook A rate is calculated taking particular account of inflation, which has returned in recent months in France to levels not seen since the 1980s (6.2% over one year in November according to INSEE). Since August 1, the Livret A rate has gone from 1% to 2%, but with inflation at 6.2%, even a revaluation beyond 2% will not make it more attractive in 2023.

As for knowing what exactly will be the rate of the booklet A from next February 1, the decision remains largely political, and it is up to the Minister of the Economy Bruno Le Maire to set it.