The Livret A raked in 4.5 billion euros last month, recording the best month of August in its history, boosted by the increase in its rate from 1% to 2%, according to data published Wednesday by the Caisse des deposits. For comparison, in August 2021, net inflows (difference between deposits and withdrawals) had amounted to 1.67 billion euros. Last month was marked by the raising of its interest rate, from 1% to 2%. It was still at 0.5% at the start of the year.
A second record month after July
This record for August comes after that of July, which had seen unprecedented net inflows for this month of the year, at 2.64 billion euros. Since the start of the year, Livret A outstandings have increased by 23.6 billion euros, almost the 24.5 billion euros recorded between January and August 2020, when the start of the pandemic had boosted the attraction of the French for the Livret A.
The Sustainable and Solidarity Development Booklet (LDDS) for its part recorded a net collection of 780 million euros in August. Managed jointly by the Caisse des dépôts (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 energy savings in housing. .
The cumulative outstanding balance of the two passbooks amounts to approximately 497 billion euros, with an increase of 5.2% over one year. While the rise in the Livret A and LDDS rates may have encouraged the French to deposit their savings there, it is however important to note that their yield remains negative when inflation is taken into account. The latter reached 5.9% over one year in August according to INSEE. Its rate is however more advantageous than that of many euro funds (the least risky) of life insurance.
“Taking into account inflation and interest rates, the yield on the Livret A could go to 3 or even 3.2% on February 1,” said Philippe Crevel, director of the Cercle de l’épargne.