For the first time in ten years, the Livret A rate will increase to 1%, after having been at 0.5% since February 1, 2020.
The Minister of Economy announced this morning, after following the advice of the Banque de France, that the Livret A rate will double. This is the first increase in 10 years; in August 2011, it went from 2% to 2.25%. In February 2020, it fell to 0.5%, the lowest rate so far.
François Villeroy de Galhau, Governor of the Banque de France, stated that a remuneration rate of 1% “would be likely to better ensure the remuneration of Livret A holders, without creating too significant a cost, in order to preserve the financing of social housing.”
The Livret A remuneration rate is calculated twice a year by averaging the average inflation rate over the past six months and the average interbank rates, at which banks exchange money short-term.
According to the Banque de France, as of December 31, 2020, there were 55.7 million Livret A accounts in France.
Bruno Le Maire also confirmed that the Livret d’Épargne Populaire (LEP) will increase from 1% to 2.2%. This account is reserved for people with modest incomes (a maximum of €20,296 per year for one person). The minister emphasized the importance of this account which “offers better protection against inflation.”
