PARIS, Jan 21 (Ruja) -- Where should you put your money when your savings have exceeded the limit of a Livret A? Christian Fontaine, executive editor of the French financial outlet Le Revenu, has some advice.
According to BFMTV News Channel, many savers want to invest their money in risk-free financial instruments. Deposits in France's Type A savings account have skyrocketed in 2023 and are one of the star wealth management products, with interest rates rising from 2% to 3% in a year, although the interest rate is still lower than inflation, but higher than many other risk-free investments. There is also an advantage to the A savings account, which is a tax-free account. The only downside is that many depositors of Type A savings accounts have now reached the deposit limit of €22,950. So, are there other financial products that can be compared?
In an interview with the BFMTV business channel, Christian Fontaine introduced that the regular account (Comptes à terme), the variable capital investment fund (Sicav monétaires) have their suitable investors, the fixed account is suitable for those investors who can freeze their money for a certain period of time, and the variable capital investment fund was a star investment in the early 90s of the 20th century, with a return of about 10% at that time, and today it has a return of 3% to 4%.
One can't forget about euro life insurance either. In 2023, Euro Life Insurance will be overtaken by Type A savings accounts, but in the long run, Euro Life Insurance will yield more than Type A savings accounts.
Of course, let's not forget that the most similar to the A savings account is the Sustainable and Solidarity Development Account (LDDS), which is also regulated and risk-free tax-free accounts, with an interest rate of 3% like the A savings account until the end of January 2025, with a deposit ceiling of 12,000 euros.
In addition, the Mass Savings Account (LEP) interest rate for low-income people is 6% since August 1, 2023, and the rate is adjusted every six months. Bank of France Governor François Villeroy de Galhau said on January 11 that the interest rate on the mass savings account would remain "well above the inflation rate" after the adjustment on February 1. French Economy Minister Bruno Le Maire confirmed on the 15th that the interest rate on the mass savings account will be reduced to 5% from February 1. Since October 2023, the deposit limit for the Public Savings Account has been increased from €7,700 to €10,000.