This is an announcement that risks affecting millions of French savers. The Livret A rate should fall from February 2025 to reach 2.5%. The announced drop reflects the favorable trend in inflation in France. While the rate of 3% represented a historic peak since 2009, its adjustment to 2.5% is part of a logic of economic normalization.
The calculation formula, based half on inflation over the last six months and the other half on interbank rates, justifies this downward revision. This decision, which will be made official in mid-January, marks the end of an exceptional period where the rate was frozen by the former Minister of the Economy Bruno Le Maire until the end of January 2025.
Impact on French savings
This change in the rate is not insignificant for French savers. The Livret A, the French people’s favorite savings product, continues to show robust health with an increase in its outstanding amount of 210 million euros in September. However, Eric Lombard, general director of the Caisse des Dépôts, raises an economic question that often arises: do the French save too much? If it is difficult to define “too much”, it is undeniable that the French are among the biggest savers in Europe.
According to the director of the CDC, this saving behavior could slow down economic growth. Also, economic decision-makers prefer to see the French consume more in order to revive growth.
Diversify savings
Faced with this new situation, the CDC itself encourages diversification of investments. Eric Lombard particularly recommends investing in the stock markets for long-term needs and financing retirement. This position, unusual for the guardian of regulated savings, highlights a growing concern regarding the distribution “much more uneven” assets than income in France.
Even with this decline, Livret A retains undeniable advantages : a state guarantee, immediate availability of funds and total exemption from taxes and social security contributions. These characteristics continue to make it a reference investment for the precautionary savings of French households.
The final decision on the new rate will be made around January 15giving savers a few weeks to adjust their savings strategy.
- The Livret A rate should fall from 3% to 2.5% in February 2025
- This revaluation takes place in a context of falling inflation and marks the end of a period of exceptionally high rates
- The CDC encourages diversification of savings towards more dynamic investments for the long term
