How to limit the damage in this situation?

A costly decision for savers

However, the reality is that the Ministry of Economy has decided to maintain this rate at 3% for a period of one year. Due to this unfortunate decision we lose about 104 euros in interest this year. In July 2023, Bruno Le Maire, Minister of Economy and Finance, made a surprise announcement on television.

Livret A, very popular with French savers, will be maintained at 3% for a period of one and a half years until January 2025. He claimed that the decision will provide security, stability and visibility to around 55 million holders. Leverett A. a booklet.

However, this good news led to another less pleasant reality: without this freeze, the livre rate would have to rise from 1 to 4.10%.^er August last year. This scenario therefore indicates a potential loss of 140 euros or more for the year 2023.

Calculation based on specific formula

Livret is a rate usually adjusted according to a specific formula that takes into account the average values ​​of two essential parameters: inflation and interbank rates of the previous semester, according to information provided by specialized sites. Without a freeze imposed by the Minister, the Leverate A rate should be set at 1 to 3.90%.^er February for a minimum period of six months.

How can you estimate your potential losses due to this decision?

• Calculate the difference between the current rate (3%) and the no-freeze rate (4.10%).
• Multiply this difference by the total amount of your savings in Leverate A.
• Divide this result by 12 to get the monthly loss and multiply it by the number of months involved to get the total loss.

To find out exactly how much you have lost on yourself a booklet Due to this decision you can use Twitter Post Facebook Tweet Send via Whatsapp.

What are the options to limit the negative effects of freezing the Livret A rate?

• Consider other forms of savings, such as Housing Savings Plan (PEL) or Housing Savings Account (CEL), which offer more advantageous interest rates.
• Diversify your savings by investing in medium-risk vehicles such as bonds, which can offer higher returns than Leverage A, while remaining less risky than pure stocks.
• If you are retired or close to retirement age, consider switching a portion of your savings to life annuity products, which will ensure you a regular and stable income throughout your retirement years.
• Also remember to consult economic news regularly to stay informed about rate changes and the best investment opportunities available in the market.