Finance: How Will Lower Livret A Interest Rates Affect Your Savings

The dollar is sinking despite the fiery speeches of our dear leaders across the Atlantic. But rest assured, there are other tasty assets to boost your finances! As traditional savings falter, notably with the Livret A and the LEP, it becomes urgent to look into the prospects of these investments. Their rates will soon weaken, so it might be time to find new horizons to secure your savings.

Finance in turmoil: the end of the French savings Eldorado  

Livret A savers, whose limit is €3,000 max, and LEP savers will soon be gritting their teeth. These savings accounts, long perceived as safe havens, are in the midst of a storm. The reason? The rate cut, scheduled for February 2025, seriously threatens returns. 

The Livret A, still maintained at 3% until then, could see its rate melt like snow in the sun.

Why this decrease? 

• The slowdown in inflation (only 1.2% in September 2024).
• Interbank rates, heavily influenced by the decisions of the European Central Bank (ECB).
• The revaluation mechanism, closely linked to economic conditions.

This situation highlights a dilemma for savers: keep these secure but low-yield savings accounts or explore other more attractive solutions?

ECB: the key to lower rates  

Ah, the ECB… With its growing influence on interbank rates, it plays a decisive role in reducing the Livret A rate. While not directly dependent on inflation like the LEP, it remains impacted by European monetary policies. 

In 2024, interbank rates hovered around 3.45%, a figure far from the expectations of savers. And that’s not improving: during the next revision, the Livret A rate – this alternative to bitcoin (BTC) for financing the nuclear sector in France – could drop to around 2.6%.

In this context, modest households holding LEP are even worse off. The double drop in rate in 2024 (from 5% to 4%) has already caused losses, and the trend is not upwards. In February 2025, we could end up with a rate below 2%. This is an unacceptable situation, as the LEP rate must never fall above that of the Livret A passbook savings account. In short, this is not the time to count on these savings accounts to make a fortune.

Finally, let’s not forget the existence of the Super Livret Crypto, a new savings solution capable of competing with traditional formats like the Livret A. Why not take a look?