Bad news for Livret A holders: its rate will drop “to around 2.5%”, we explain why

The Livret A rate will drop to “around 2.5%” on February 1, 2025, announced this Monday, January 6, the Minister of the Economy Eric Lombard, who is still waiting for the proposal from the Governor of the Bank of France to specify this figure.

“The governor of the Bank of France François Villeroy de Galhau will make a proposal to the Minister of Finance, most certainly a reduction”, and it is “around 2.5% (…) that the decision will be made”, said Mr. Lombard on France Inter.

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The formula for calculating the Livret A rate, also valid for the Livret de développement durable et solidaire (LDDS), is based half on the price changes of the last six months and half on an exchange rate between banks.

New rate

In mid-January, as soon as the final inflation figures for December are known, the Governor of the Bank of France will propose a new rate to Bercy, based on the result of the calculation formula or by deviating from it.

“The Livret A rate will fall, but inflation has fallen sharply since it is around 1%”, recalled the minister.

Less remunerative

Even with a less remunerative Livret A, “savings are not only protected but they allow real assets to increase”, he justified.

The rate of the Livret A, which has not seen a drop since 2020, has been set at 3% since the start of 2023. As a reminder, the LDDS (formerly LDD) has a rate identical to that of the Livret A but has a lower payment ceiling, MoneyVox points out.