The money deposited in the current account does not receive any remuneration from the bank. On the other hand, it incurs its holder management fee. Here are two more good reasons to empty your checking account before March 31!
It is known that in France, banking institutions do not reserve any remuneration for investments made on current accounts. This is a rule that has been in place for years, born out of an agreement between the government and banks, which, in return, undertook to maintain free checkbooks.
If, until now, this agreement has been generally accepted, today, experts do not hesitate to talk about it. “termination”Given the now significantly reduced use of cheques, at the same time many banks in other euro zone countries remunerate current account investments.
Whatever the rate, the remuneration is well guaranteed. Which is not yet the case in France, where the current account, in addition to not generating any added value, sometimes incurs very expensive management fees.
Interest rates on savings accounts are attractive now
To reap the benefits of your investment, it is therefore recommended to keep only what is strictly required for current expenses in your current account and transfer the savings to a savings account that earns remuneration. In addition, the current period is favorable for interest rates to return to their real values with a reduction in the inflation rate.
Indeed, the Livret A rate, set at 3% until 2025, has finally surpassed the inflation rate, which, according to INSEE estimates, fell below 2.9% in a year last February. Never seen after 2021!
You should know that a comparison of the interest rate and inflation rate shows a positive balance of 0.1% on the interest rate, which is synonymous with a real positive return on Livret A that is not absorbed by inflation. The returns are certainly minimal, but it’s undoubtedly better than nothing and better than keeping your money in an expensive checking account.
Maximize remuneration by respecting the “two fortnight” rule
Every day lost equals a few pennies lost. This is why it is advisable to transfer your money to a savings account quickly, especially since the operation is done instantly and without fees. However, you will need to consider the “two-week rule” (1st to 15th and 16th to 30th/31st of the month) that banks follow.
If, for example, you transfer your money to a savings account on April 2, your savings will start earning interest at the beginning of the second half of the month. Hence you must transfer your money from current account to savings account after 31st March to start getting interest benefit from 1st April.
