The Livret A, the health crisis and the 40 billion euros set aside

To the same causes, the same effects. The uncertainties linked to the fourth wave of the Covid-19 epidemic prompted savers to again place large sums in their Livret A in August.

After a net inflow (deposits, less withdrawals) of 1.15 billion euros in July, this regulated passbook has indeed seen its outstandings swell by 1.67 billion last month, according to figures released on September 22 by the Caisse des Dépôts. It’s more than an ordinary August: “The average collection for the eighth month of the year amounted, for the last ten years, to 1.2 billion euros”, comment Philippe Crevel, founder of the Cercle de l’épargne.

Caution in setting

“Households have not yet decided to tap into their Covid fund to consume or to redirect their liquidity towards longer-term investments” and “Caution remains in order while awaiting further developments in the health situation”, he believes, foreseeing however, “If the epidemic continues to ebb”, a reduction in savings flows by the end of 2021, with “Back-to-school and end-of-year holiday expenses”.

By adding the data from the Livret de développement durable et solidaire (LDDS), whose operation is very similar to that of the Livret A (the rate of remuneration is the same and both benefit from a tax exemption), the net collection of this month of August 2021 amounts to almost 2 billion euros (1.90 billion precisely).

In total, 40.66 billion euros have thus come to swell the Livret A kitty in eighteen months of health crisis, since March 2020, or on average nearly 2.3 billion euros per month. The total amount garnered in a year and a half by the two savings accounts reached 53.2 billion.

Result, a new record for outstanding Livret A and LDDS, at 472.4 billion euros as of August 31, 2021.

For the Livret A and the LDDS, the month of August was also marked by a stable rate of remuneration, remained fixed at 0.50% net of income tax and social security contributions. Remember that this rate can, as a general rule, be changed twice a year, on the 1st^er August and 1^er February.

Yes “The Livret A is not penalized by its negative real return due to the rise in inflation”, “the question of [du] rate could arise next February if inflation remains around two points ”, underlines Mr. Crevel.