Infotech

The Livret A has been costing the French money for three years



Posted on Oct 27, 2020 at 4:16 p.m.Updated Oct 27, 2020 6:02 PM

The favorite savings account of the French, a financial pit? In 2019, the real return on the Livret A, i.e. the difference between its rate of remuneration and inflation, fell into negative territory for the third consecutive year, as shown in the Banque de France’s annual report on the regulated savings published on Tuesday. Thus, with a rate of 0.75% and inflation at 1.10%, the real return on the Livret A stood at -0.35% in 2019, after two successive drops of 0.25% then 1, 05% in previous years.

However, during its presentation of the report on Monday, the Banque de France wanted to be reassuring. “ This is not a new situation, commented Olivier Garnier, Director General of Statistics, Economic and International Studies. Since its creation in 1818, the Livret A has only experienced 79 years of negative real returns. It is better not to worry the savers – or 81.8% of French people depending on the holding rate – who, on average, held 5,100 euros on their Livret A in 2019. Especially since this year, the overall outstanding has risen sharply due to containment measures which have triggered a phenomenon of forced savings.

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