Max out your Livret A by the end of March or you’ll lose money

The French leave more money in their current accounts than in their livres. This is a sad reality because in France, current accounts do not carry interest. This is all the more unfortunate because Leverage offers the same benefits as a current account: immediate availability of funds, absence of fees, etc.

At the moment, while Livret A pays 3% net per year (i.e. more than inflation, hence the fact that the real return is finally positive…), it’s too embarrassing to keep your money in the account in a liquid form. is . In one transfer and a few clicks, you will be able to transfer your capital to a profitable and risk-free investment as it is guaranteed by the state.

But why do you have to do it before the end of the month? Logically, the sooner you do it, the more interest you can generate. But this is not the only reason – especially in France. On this topic, do you know the fortnight rule?

A French rule that disadvantages savers

Policies governing state-guaranteed savings accounts vary around the world. In France, the Rule of fortnight Manages state guaranteed brochures. Interest on capital is calculated twice a month, which requires careful management to maximize profits. Actually, to avail the remuneration on this booklet, the capital investment should remain in booklet A for at least two weeks in a month, ie from 1st to 15th or 16th to 31st.

💸 How to optimize your payments and withdrawals from your Livrate account? We decipher the fortnightly rule.# A booklet #P #LDDS #Save money #budgettip pic.twitter.com/lNcvc5lg1i

— Les Echos START (@EchosStart) February 8, 2024

In other words, Interest is paid only on the amount deposited from the first day of the fortnight. To avail the 3% net annual rate currently available, it is imperative to invest your money by the end of March. For example, if you make a deposit on April 2nd, it won’t be paid out until April 15th. Interest will be generated only during the second fortnight from 16th to 30th.

This rule also applies to withdrawals : Completion of full fortnight is required to earn interest on withdrawn capital. If you withdraw money on 10th of the month, you will not get interest for the period from 1st to 10th. So it is advisable to keep your money in Livret A for a full fortnight, for example from 1st to 15th. , to benefit the associated interests.

The Livret is not the only book in France that imposes this fortnightly rule. This is also the case with almost all bank savings accounts. Among them, the most attractive on the market is Fortunio which offers 5.50% annual gross return in the first month: this is unprecedented, and you would be wrong to deprive yourself of it. Note that this free bank, named the cheapest bank in France Pricebank, also offers 230 euros to open an account. Gold Card Includes: This is the best offer ever from a market-leading bank.

55 million livret a

A Frenchman may hold only one livret A under penalty of a fine. Since January 1, tax authorities have collected this information directly from banks, so you no longer have to enjoy fraud. The disadvantage of this investment is that it has a ceiling of 22,950 euros. Certainly, only 6.5% of Livret A books are completed, but that is still a problem for some.

You should know that if people reduce the amount of money in the current account, the number of Leverage A can increase significantly. This is a transfer that takes only a few seconds and guarantees you a net return of 3% per year. The same principle applies if you have paid this money into a savings account in your bank. However, few offer higher rates than Liverate A. There are some exceptions like Fortunio which pays 5.50% gross per annum (and which offers 230 euros to open a free account by Monday March 18) or Hello Bank! Which offers 3.50% annual gross. Note that BoursoBank is limited to 2.50% gross per year, which is lower than Livret A.

I open a free account with Fortunio

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