Clair Posted January 22, 2009 Share Posted January 22, 2009 The interest rate for the Livret A, currently at 4%, will be set at 2.5% from 1st February.The interest rates of the Livret de développement durable (LDD), Livret d’épargne populaire (LEP), compte d’épargne logement (CEL) will also drop, as they are indexed on that of the Livret A.The next review is due on 1st May and some are already predicting another drop to 2% or lower. Link to comment Share on other sites More sharing options...
AnOther Posted January 22, 2009 Share Posted January 22, 2009 Bummer, not even keeping up with inflation at that rate [:'(] Link to comment Share on other sites More sharing options...
Clair Posted January 22, 2009 Author Share Posted January 22, 2009 The rate used to be reviewed every 6 months, but new rules now say it is reviewed every 3 months. Link to comment Share on other sites More sharing options...
cassis Posted January 22, 2009 Share Posted January 22, 2009 If you hold different French savings accounts with ING, CIC and similar and switch money around as and when special rates are available, you can do better than a single Livret A. Link to comment Share on other sites More sharing options...
BobDee Posted January 23, 2009 Share Posted January 23, 2009 Can you legally have a number of livret A's with the maximum amount in each? I thought this was going to be stopped?BobD Link to comment Share on other sites More sharing options...
Clair Posted January 23, 2009 Author Share Posted January 23, 2009 [quote user="BobDee"]Can you legally have a number of livret A's with the maximum amount in each? I thought this was going to be stopped?BobD[/quote]It has never been allowed.Each person in a household can have a Livret A, each with a max ceiling of €15 300. Link to comment Share on other sites More sharing options...
cassis Posted January 23, 2009 Share Posted January 23, 2009 One in the wife's name, one in mine. Each person in the household is allowed up to 15,300 in a Livret A. [quote]Vous êtes mariés avec 2 enfants. Vous pouvez donc ouvrir jusqu'à 4 Livrets A avec un plafond total de 61 200 € pour votre famille (15300 € maximum pour un Livret A).[/quote]So when one account has a "special" on for deposits made between thisdate and that date, we switch money from the other one to it. They're useful for ready cash which also earns interest. Link to comment Share on other sites More sharing options...
Chancer Posted January 23, 2009 Share Posted January 23, 2009 I guess that it was no secret that Eurozone interest rates would have to drop but before this year I had never ever seen any adverts on TV for Livret A, since Christmas almost every other ad was for one of the inviting livret A offers , 6% up to 50k until end of march, 4.5% for the year etc.It was clear to me that they wanted to get money in whilst they still could but it seemed like a concerted co-ordinated effort, co-incedence?.....................Now knowing the plafond per person, the 50K figure advertised I think was misleading if not publicité mensongeuse. Link to comment Share on other sites More sharing options...
Clair Posted January 23, 2009 Author Share Posted January 23, 2009 [quote user="J.R gone native"]I guess that it was no secret that Eurozone interest rates would have to drop but before this year I had never ever seen any adverts on TV for Livret A, since Christmas almost every other ad was for one of the inviting livret A offers , 6% up to 50k until end of march, 4.5% for the year etc.It was clear to me that they wanted to get money in whilst they still could but it seemed like a concerted co-ordinated effort, co-incedence?.....................Now knowing the plafond per person, the 50K figure advertised I think was misleading if not publicité mensongeuse.[/quote]There were not adverts before January 2009 because, by law, only La Poste and La Caisse d'Epargne were allowed to offer the Livret A.The EU has forced the French government to open the secured deposit to all the other French banks. These banks are now chasing savers by offering high rates on deposit over the Livret A ceiling. Link to comment Share on other sites More sharing options...
tinabee Posted January 23, 2009 Share Posted January 23, 2009 [quote user="Clair"]The interest rate for the Livret A, currently at 4%, will be set at 2.5% from 1st February.The interest rates of the Livret de développement durable (LDD), Livret d’épargne populaire (LEP), compte d’épargne logement (CEL) will also drop, as they are indexed on that of the Livret A.The next review is due on 1st May and some are already predicting another drop to 2% or lower.[/quote]Sorry if I am missing something, but do you know if the LEP/LDD rates will also drop on 1st Feb, or will they stay at the current level until 1st May? Link to comment Share on other sites More sharing options...
parsnips Posted January 23, 2009 Share Posted January 23, 2009 Hi, Now that the Livrets are much less attractive I am going to use my on-line ,no entry-fee, guaranteed € Life Assurance Plan as a savings account. For anyone paying less than the higher tax rates, the approx. 4.5% net of fees , which these plans pay is better than any of the livrets(outside the limited period special offers). Even if you don't already have one of these plans you can start one with as little as 500€. You can pay in and withdraw on-line to your bank's current account. It is important when starting a plan to opt to declare your interest with your other income on your annual declaration,otherwise 35% tax will be taken at source. After paying 12.1% social charge and (say) 10% tax, you will still get 3.5% net. The interest on these plans is not affected by changes in bank rate, as they draw on portfolios of government bonds built up over many years . My no-entry fee plan is with Fortuneo/ Symphonis Vie, but there are others also on line. Link to comment Share on other sites More sharing options...
Clair Posted January 23, 2009 Author Share Posted January 23, 2009 [quote user="tinabee"][quote user="Clair"]The interest rate for the Livret A, currently at 4%, will be set at 2.5% from 1st February.The interest rates of the Livret de développement durable (LDD), Livret d’épargne populaire (LEP), compte d’épargne logement (CEL) will also drop, as they are indexed on that of the Livret A.The next review is due on 1st May and some are already predicting another drop to 2% or lower.[/quote]Sorry if I am missing something, but do you know if the LEP/LDD rates will also drop on 1st Feb, or will they stay at the current level until 1st May?[/quote]The rates on the LEP and LDD is linked to the rate of the Livret A. If the rate on the Livret A goes up or down, the rate on these accounts follow.As the rate on the Livret A is going down on 1st Feb, these will go down too.If the rate of the Livret A is further reduced on 1st May, the rate on these will be reduced too. Link to comment Share on other sites More sharing options...
tinabee Posted January 23, 2009 Share Posted January 23, 2009 [[quote user="Clair"][quote user="tinabee"] [quote user="Clair"]The interest rate for the Livret A, currently at 4%, will be set at 2.5% from 1st February.The interest rates of the Livret de développement durable (LDD), Livret d’épargne populaire (LEP), compte d’épargne logement (CEL) will also drop, as they are indexed on that of the Livret A.The next review is due on 1st May and some are already predicting another drop to 2% or lower.[/quote]Sorry if I am missing something, but do you know if the LEP/LDD rates will also drop on 1st Feb, or will they stay at the current level until 1st May?[/quote]The rates on the LEP and LDD is linked to the rate of the Livret A. If the rate on the Livret A goes up or down, the rate on these accounts follow.As the rate on the Livret A is going down on 1st Feb, these will go down too.If the rate of the Livret A is further reduced on 1st May, the rate on these will be reduced too.[/quote]Thanks for clarifying that. I guess I was hoping to get better rates for a bit longer [:(] Link to comment Share on other sites More sharing options...
Clair Posted April 3, 2009 Author Share Posted April 3, 2009 [quote user="Clair"]The interest rate for the Livret A, currently at 4%, will be set at 2.5% from 1st February.The interest rates of the Livret de développement durable (LDD), Livret d’épargne populaire (LEP), compte d’épargne logement (CEL) will also drop, as they are indexed on that of the Livret A.The next review is due on 1st May and some are already predicting another drop to 2% or lower.[/quote]There are more indications that the interest rate for the Livret A will drop below 2% on 1st May.If the Banque de France applies the correct calculation, the rate should be set at 1.25% or even 1% if the inflation rate for March falls.However there is a possibility for the interest rate to be adjusted 4 times in 2009 instead of the usual two calculations. Link to comment Share on other sites More sharing options...
AnOther Posted April 3, 2009 Share Posted April 3, 2009 Thank you for that heartwarming snippet Clair [:(] Link to comment Share on other sites More sharing options...
Clair Posted April 12, 2009 Author Share Posted April 12, 2009 The rate has now been confirmed at 1.75% from 1st May.The rate of several other regulated savings accounts are linked to this and they will most probably follow.This rate will be the lowest the Livret A has offered since its creation.http://www.cbanque.com/placement/taux_livreta.php Link to comment Share on other sites More sharing options...
parsnips Posted April 13, 2009 Share Posted April 13, 2009 [quote user="Clair"]The rate has now been confirmed at 1.75% from 1st May.The rate of several other regulated savings accounts are linked to this and they will most probably follow.This rate will be the lowest the Livret A has offered since its creation.http://www.cbanque.com/placement/taux_livreta.php[/quote]Hi, Perhaps now people will take notice of my previous posts suggesting the use of life assurance guaranteed € funds as savings accounts. It is essential to take out one with NO Entry Fee, I recommend Fortuneo/Symphonis which paid 4.5% last year and will pay similar this year. This plan can be subscribed and run over the internet. The rate is NOT linked to Bank Rate. Although for the first 8 years the interest is taxable it is still very attractive compared with 1.75%; you also ,of course, benefit from IHT exemptions. Link to comment Share on other sites More sharing options...
allanb Posted April 15, 2009 Share Posted April 15, 2009 [quote user="parsnips"]Although for the first 8 years the interest is taxable... [/quote]Isn't it also true that the tax is not payable until you make a withdrawal? So there's an added benefit in the form of a tax deferral - in fact, if you don't withdraw anything until the plan matures, you're getting an eight-year tax deferral, which is worth something. On the other hand, I think you're a bit optimistic in saying that the rate isn't linked to Bank Rate. It's true there's no direct link, but I think if Bank Rate goes down, other interest rates will tend to follow, including bond yields. Link to comment Share on other sites More sharing options...
parsnips Posted April 15, 2009 Share Posted April 15, 2009 [quote user="allanb"][quote user="parsnips"]Although for the first 8 years the interest is taxable... [/quote]Isn't it also true that the tax is not payable until you make a withdrawal? So there's an added benefit in the form of a tax deferral - in fact, if you don't withdraw anything until the plan matures, you're getting an eight-year tax deferral, which is worth something. On the other hand, I think you're a bit optimistic in saying that the rate isn't linked to Bank Rate. It's true there's no direct link, but I think if Bank Rate goes down, other interest rates will tend to follow, including bond yields. [/quote]Hi, As you say there is a delayed and indirect link (expected returns this year are slightly down on last) but we are starting to see how harshly the very direct link to the livrets is operating.But as a safe haven for the forseeable future these funds are unbeatable, and if at some time inflation causes livret rates to return to their historic levels above 5% ,you can always move the bulk of your funds back into them, just keeping the minimum necessary to maintain the fund ready for the next downturn.You are correct about the taxation, but I was considering the fund being used in the same way as a livret, as a place to keep surplus money,instantly available, in the short to medium term. Link to comment Share on other sites More sharing options...
Doodle Posted April 16, 2009 Share Posted April 16, 2009 Hi, just to cheer up ernie y - you could look at the livret A new rate of 1.75% as effectively being net therefore grossed up would mean somewhere in the region of 2.24 gross. Feeling better already? Chris Link to comment Share on other sites More sharing options...
Clair Posted July 16, 2009 Author Share Posted July 16, 2009 The interest rate for the Livret A, currently at 1.75%, is set to drop to 1.25% on 1st August.The government may intervene to limit its decline and appease savers.The interest rates of the Livret de développement durable (LDD), Livret d’épargne populaire (LEP), compte d’épargne logement (CEL) will also drop, as they are indexed on that of the Livret A. Link to comment Share on other sites More sharing options...
Chancer Posted July 16, 2009 Share Posted July 16, 2009 Aren't EDF offering 4 or 5% fixed for a few years? Link to comment Share on other sites More sharing options...
Clair Posted July 16, 2009 Author Share Posted July 16, 2009 were...The offer closed on 6th July. Link to comment Share on other sites More sharing options...
Clair Posted July 23, 2009 Author Share Posted July 23, 2009 Now confirmed: the interest rate will be set at 1.25% on 1st August.In French here and in google English here. Link to comment Share on other sites More sharing options...
Jako Posted July 27, 2009 Share Posted July 27, 2009 In june '08 the interest rate was 4% and inflation at 3%, net profit was 1%With an interest rate of 1.5% and inflation ( june) of -0.5% net profit is 2%.Net profit has doubled![:D] Link to comment Share on other sites More sharing options...
Recommended Posts
Please sign in to comment
You will be able to leave a comment after signing in
Sign In Now