Reduced Livret A Interest Rate: These Bank Books Offer Better Returns Until Year-End
Looking for alternatives to your Livret A? You might be enticed by the shiny new "super savings accounts" banks are offering. They work like your Livret A, with immediate access to your savings and a deposit guarantee of up to 100k euros. But are they really a better bet after taxes and eligibility conditions are taken into account?
Savvy savers concerned about their Livret A rate drop on August 1st are eyeing these accounts. Life insurance and bond funds could be secure investments, but super savings accounts are worth considering too. With competitive offers aimed at attracting Livret A worriers, you might wonder if these accounts could "beat" the Livret A.
However, don't swap your Livret A for a bank savings account too hastily. Unlike "regulated" savings accounts, bank savings accounts' interest, even the "super" ones, are subject to a flat tax (PFU) of 30%. To make these accounts an attractive option, you'll want to ensure the net yield, after taxes, is at least as high as your Livret A.
For instance, with the Livret Cashbee's boosted rate of 6% for two months (followed by 1.9%), new subscribers before June 30th can expect a net yield higher than the Livret A by the end of the year. But don't forget, you'll have to hold onto this money until January 1st, 2026—similar to a time deposit (CAT).
The Super Livret Placement-direct.fr and Ramify are offering similar boosted yields, with the potential for higher net yields than the Livret A. However, these yields may be tied to specific conditions, such as holding onto the money until the end of 2025 or 2026. You'll need to weigh the immediate availability of your savings against the higher yields.
Yes, it appears possible to do slightly better than the Livret A for the second half of the year, but this comes at the expense of immediate savings availability. Also, remember that the advertised regular rates can change at any time, and adjustments can result in lower yields. To maximize the operation, consider subscribing to these offers at the end of the promotional period to minimize the number of months remunerated at the regular rate until the end of the year. Lastly, this could be a smart move for non-taxable savers or those subject to the marginal tax rate (MTR) of 11%—they pay less tax on the interest from these savings accounts compared to those with progressive taxation.
So, before you dive into the savings account pool, remember that each account type has its perks and drawbacks. Make an informed decision by weighing the pros and cons and your personal financial situation. Good luck on your savings journey!
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- When considering the "super savings accounts" offered by banks, it's important to take into account their interest rates after taxes, as they are subject to a flat tax (PFU) of 30%.
- For instance, a new subscriber to the Livret Cashbee with a boosted rate of 6% for two months can anticipate a net yield higher than the Livret A by the end of the year, considering the time deposit (CAT) requirement until January 1st, 2026.
- By comparing different savings accounts using a savings account comparator, you can make more informed decisions, keeping in mind that each account type has its advantages and disadvantages, such as taxation implications and the immediate availability of your savings.
- It's possible to do slightly better than the Livret A for the second half of the year with some "super savings accounts," but keep in mind the trade-off between immediate savings availability and higher yields, especially for non-taxable savers or those subject to the marginal tax rate (MTR) of 11%.
