Livret A, LDDS, LEP, PEL, CEL: What rates will rise on February 1st?

Livret A, LDDS, LEP, PEL, CEL: What rates will rise on February 1st?

Image credit: Fotolia

Image credit: Fotolia

As a result of the recent rise in inflation, the price of Livret A will be raised on February 1st. Livret A, LDDS, LEP, PEL, CEL: Which regulated savings rates are increasing and which are still hidden?

Handbook A and LDDS

Bruno Le Maire announced this on January 14: on February 1, 2022, the Livret A rate will be raised from 0.50% to 1.00%. Unprecedented reassessment for 11 years. The decline started in August 2011: the Livret A rate was then 2.25%, then gradually decreased until it reached 0.50% in February 2020, and has remained unchanged since then.

This increase is the result of the recent recovery in inflation, which reached 1.60% during 2021 according to INSEE. In fact, the rate of return on Livret A is regulated: it corresponds to a semiannual average of the inflation rate and the short-term interbank interest rate (EONIA), rounded to the nearest tenth of a point. The minimum rate cannot be less than 0.50%. However, the government has the possibility of increasing the rate if it deems that the conditions require the maintenance of the purchasing power of savers. It takes its decision after consulting the Governor of the Bank of France.

If the 55 million French holders of Livret A are to be able to double their wages, the fact remains that his return is still less than inflation. Thus its real return (after deducting inflation) remains negative.

The Handbook of Sustainable and Solidarity Development (LDDS) is also benefiting from government support and will also be raised to 1.00%.

le lip

The LEP (Popular Savings Account) rate is equal to the Livret A rate, increased incrementally. The LEP bonus will also adjust upwards on February 1st and will go from 1.00% to 2.20%.

The LEP is aimed at French people with limited resources: its opening is subject to a resource cap. The maximum amount is 7,700 euros.

THE PEL

Unlike the regulated manuals (Livret A, LDDS and LEP), the PEL rate will not be raised next February.

The PEL rate is stable when opened and valid for its entire life. For example, bonuses for PELs opened between 01/02/2015 to 31/2016 are paid out at 2.00% and those opened as of 01/2016 at 1.00%.

For “new” PELs, the rate is calculated once a year and the new rate takes effect on the first day of the month following its publication, i.e. January 1. Moreover, the PEL wage is determined by an arithmetic equation that does not depend on inflation and cannot be less than 1.00%. The last account resulted in 0.25%. Therefore the PEL rate remained unchanged, at 1.00% on January 1, 2022. There will therefore be no revision of the PEL rate before the next update, which is scheduled for January 2023.

CE

The CEL (Housing Savings Account) rate is equal to 2/3 of the Livret A rate, rounded to the nearest point. Thus, the CEL price will also be adjusted upwards on February 1, 2022 and will increase from 0.25% to 0.75%.

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