Second wind for Booklet A


The Livret A passbook savings account, a savings product regulated by the French government, is often singled out for its relatively low interest rate compared to other investments. However, this did not prevent a resurgence of interest on the part of the French. During March and April 2016, for the first time in a long time, the amount of deposits on Livret A passbooks is higher than the amount of withdrawals. In April, more than 250 million euros were paid out…

Renewed interest in Booklet A

After more than 2 years of neglect, the booklet seems to be the subject of renewed interest from savers. In March and April 2016, a real turnaround occurred as the latter filed more than they withdrew. In the jargon, this event is called an “outflow”. If we take a closer look at April, nearly 260 million euros net were paid out, according to figures shared by Caisse des Dépôts. Today, the question is whether it is just a boost from savers or a sustainable recovery.

In any case, in the space of 10 years, the outflow has only been recorded twice: in 2006 and 2015. And last year, the amount was quite low, in this case 170 million euros. In addition, we should not rejoice too early as taxpayers often save money during the months of March and April in anticipation of income tax payments and vacations.

livret A passbook rate
Livret A passbook rate until 2014

What are the benefits for investors?

Is this new interest in Livret A motivated by an awareness on the part of savers? It should be noted that it is in their interest to deposit their money on the passbook rather than keeping it in a current account, despite a rate of interest of “only” 0.75% (after tax) for the A passbook. This percentage is still interesting when you consider that interest rates are currently quite low and there is no inflation. Today, it is not yet possible to comment on the situation of the Livret A passbook, it would still be necessary to observe the behaviour
of savers for the coming months. On the other hand, one thing is certain: the Livret A passbook savings account has the advantage of liquidity and total tax exemption.

Morose situation of the Livret A passbook

Despite the outflow observed in April and May 2016, the situation of the Livret A passbook savings account remains rather gloomy. Between January and April, the balance sheet was negative overall, with total withdrawals approaching €1 billion (€980 million). However, it should be noted that the amount was twice as high during the same period in 2015 ($2 billion). Finally, it should be noted that life insurance is still the preferred investment for savers who deposited just under $8 billion in the first quarter of 2016.

To learn more about the A passbook offers, you can compare the French online banks that offer this investment passbook.