Towards a livret A at less than 2%: here are the alternative investments

Having dropped from 3% to 2.4% on February 1st, the Livret A savings account interest rate could be cut again this summer. This could cost savers tens of euros in interest per year. But then, what investments can they turn to?

By Maxime Gayraud

The prospect of seeing the interest rate on the Livret A savings account fall should reduce its appeal to savers, who fortunately have other investment options. LP/Jean-Baptiste Quentin

The Livret A savings account will soon be in decline. After eighteen months at 3% and a rate still at 2.4% since February 1st, the French people's favorite investment is expected to fall well below 2% by August 1st . While the decision will fall to the Minister of the Economy, Éric Lombard, in mid-July, on the proposal of the Governor of the Bank of France, economists are already heating up their calculators. And the results are not exactly in favor of savers.

Thus, according to Philippe Crevel, director of the Cercle de l'épargne, macroeconomic data suggests a Livret A rate of 1.7% on August 1. The formula, combining the half-yearly average of inflation and short-term interest rates, could even lead to a rate of 1.6% according to calculations by Éric Dor, director of economic studies at the IÉSEG School of Management.

Subscribe to read more

Already a subscriber? Log in