The preferred investment of the French is enjoying historic success at the start of 2023. Over the first three months, the Livret A savings accounts have garnered nearly 20 billion euros, indicates the Caisse des dépôts (CDC). This is a first since 2009, encouraged by the increase in the rate to 3% on February 1. Last year, it took seven months to exceed this level of net receipts. Livret A benefited from a historic March, with deposits exceeding withdrawals by 4.17 billion euros.
The cumulative outstandings of the Livret A, which has some 55 million holders, and its cousin the Sustainable and Solidarity Development Booklet (LDDS), have been evolving for several months at record levels. They weighed on March 31 the unprecedented sum of 535.1 billion euros. These two products have benefited since last year from favorable arbitrage by savers, who see in them the best guaranteed return possible for their savings.
The pay rate has, in fact, increased to 3% net since February 1. If it remains below inflation, it significantly exceeds the returns of euro life insurance funds, estimated on average at 2% by the ACPR, excluding tax. By way of comparison, only a little more than 2 billion euros were collected by life insurance in January and February, indicated on March 29 France Assureurs, which will communicate data stopped at the end of March, at the end of next week.
The money deposited in the Livret A and LDDS booklets, capped at 22,950 euros and 12,000 euros respectively excluding capitalized interest, is guaranteed by the State, exempt from taxes and social security contributions. Managed jointly by the CDC and the banking networks, the livret A is mainly used to finance social housing, while the LDDS is dedicated to the social and solidarity economy as well as to energy savings in housing.
