Since its inception, the Youth Booklet has been a very popular product, especially because of its attractive rate of return. However, this craze was interrupted in 2009 with the appearance of the Livret A. Then all eyes turned to this savings product which seemed more interesting. Especially with this relative decline in inflation levels, will the youth booklet recover?
Why did Leveret depose Leveret Jeune?
At the end of 2008, the French saved 7.5 billion euros thanks to Livret Jeune. Since then, this amount has been steadily decreasing, reaching 4.8 billion euros in January 2023, a 36% decrease over 15 years. Leverage is the main culprit for this decline, as, since January 2009, all banks have started offering this savings product to their customers at competitive rates. Its biggest advantage is its accessibility. Indeed, right from birth, parents can open such an account in their child’s name in a bank of their choice.
Inflation in favor of the remaining youth booklet?
The provisional figures for 2023 clearly show that Leverett June is taking its revenge and making a comeback, due to inflation which has increased the yield on savings accounts including Leverett June. The increase comes after 15 years of decline, which does not fail to excite savers seeking to protect themselves from the effects of rising prices.
In detail, in November 2023, the average rate for Livret Jeunesse was 3.56%, according to Banque de France figures, which represents an increase of more than 1.5 points compared to January 2023. Some institution banks may also offer rates. up to 4%. The interest rate for the Youth Booklet, unlike other regulated booklets, is fixed by the banks. That said, it cannot be lower than the Livret A rate, currently at 3%.
However, only those between the ages of 12 and 25 can open the Youth Booklet. Furthermore, it is limited to small savings, with a ceiling of 1,600 euros, while the Livret A can go up to 22,950 euros and the Sustainable Development Booklet up to 12,000 euros.
