In France, you can find a wide variety of savings accounts. It would therefore be difficult for you to find your way around. But how do you make the right choice? What type of passbook should I choose?
What exactly is a “livret”?
Anyone who wants to set aside bank savings can open a savings account. The regulated passbook is a type of savings account whose access conditions, ceilings, tax rates and rates of return are set by the State. Today, several types of regulated passbook offers can be distinguished, namely:
– The livret A or livret bleu: a person is entitled to only one livret A. The ceiling is EUR 22,950 for individuals and EUR 76,500 for associations, with a rate of 0.75%.
– The LDDS or sustainable and solidarity development booklet, only accessible to minors and adults with a tax residence in France. The rate is 0.75% and the ceiling is 12,000 euros.
– Livret d’épargne populaire or LEP with a rate of 1.25% and a ceiling of EUR 7,700.
– The youth passbook for individuals between the ages of 12 and 25 is capped at 1,600 euros, with a rate that may vary from one organisation to another.
– The home savings plan to be combined with a home savings account or CEL: the PEL has a rate of between 1 and 2.5% capped at EUR 61,200 and the CEL has a rate of 0.5% at EUR 15,300. Interest on these savings accounts is exempt for up to 12 years.
– And the popular retirement savings plan PERP
Deregulated savings accounts can be divided into two categories: bank savings books (whose conditions are set by banks) and time accounts (or blocked accounts that cannot be withdrawn for a predetermined period). There is an offer that is increasingly appealing to consumers: the zesto passbook.
Why choose regulated savings?
The passbook account is becoming more and more attractive to citizens. µThis is because for certain financial products, the remuneration, also known as “interest”, is completely tax-free. This means that the interest is not taxable and will not be subject to social security contributions. In addition, the sums paid in are available at any time and the capital is guaranteed, which is not the case with other financial investments, thanks to the deposit guarantee fund. Thus, liquidity will be insured up to the limit of 100,000 euros. Likewise, the holder is free to pay in money at his or her convenience, according to his or her abilities, without any charges. However, compared to other risky investments, the profitability is not very interesting! Moreover, you cannot get a card or cheque book with these types of savings.
What type of booklet to choose?
The tax-regulated bankbook complies with specific rules imposed by each banking institution, unlike regulated passbooks. Thus, if you opt for this savings solution, you must make a comparison. Nevertheless, before opening a passbook, find out about the closing costs. In any case, to find the best passbook for you, take into account the amount to be invested and the duration. Don’t hesitate to use an online simulator to have an approximation of the profitability of the investment according to the duration and the amount.
To open a savings account, go to a physical or virtual bank. What are the advantages of online branches? It is that the offers are often more advantageous and the subscription simplified.