Booklet A: if you are not in compliance, the tax authorities will hit very hard in 2024

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The dynamism of the French in terms of savings has increased tenfold following the increase in savingsLivret A rate which has remained at 3% net per year for more than a year. A real rush for these regulated products was observed with a record collection in 2023. 2024 also got off to a flying start with an added advantage: the real yield of Livret A became positive in February, a phenomenon that had not happened since… 3 years.

As for bank books, which are not capped at 22 950 euros like the Livret A, there are even more advantageous solutions. This is the case, for example, with Fortuneo’s Livret+ which allows you to receive 5% gross annual return during the first months. Above all, online banking (voted the cheapest bank in 2024 according to Capital/Panorabanques): this is unprecedented. This “super booklet” is the most competitive on the market.

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A single rule for Booklet A

The rule is clear: each individual is only entitled to one Booklet A. Indeed, the government offers a generous guaranteed return and it does not accept that people benefit from it on infinite capital. Banking institutions require that holders formally undertake not to hold a second Livret A elsewhere. In addition to the Livret A, French people are entitled to an LDDS, a CEL and possibly a LEP, if they meet the eligibility criteria. The latter has experienced strong popularity in recent years thanks to an active government campaign.

The State guarantee ceiling for all of these investments amounts to nearly 58,000 euros (cumulative), with an individual ceiling set at 22 ;950 euros for Livret A alone. Approximately 7.5% of Livret A accounts in France have already reached this ceiling. However, it is strongly advised against trying to open a second one to make your capital grow further. If all state-regulated investments are saturated, the only remaining option is to turn to savings accounts or other products offered by your bank.

Since January 1, 2024, banks are required to carry out an anti-duplicate check when opening a regulated booklet. No more declaration, the tax authorities will be able to directly see if you have several regulated savings accounts.

2 months to regularize

Banks must work with the tax authorities since this date to verify the status of customers' investments. Any previous breaches, such as holding multiple regulated accounts, will be reported. Offenders have a total of 2 months to regularize their situation by closing the unauthorized booklets.

It is best not to tempt the devil by opening several Livret A books and to remain discreet to avoid the attention of the tax administration. Although multiple possession of state-regulated booklets is prohibited, most offenses are not punishable. The new upcoming regulations will not provide for any financial penalty for the LDDS, LEP or CEL in the event of multiple holdings, but only the forced closure of these accounts.

On the other hand, a real fine will be applied in the event of multiple holding of Livret A, equivalent to 2% of the balance of the second livret with a threshold of 50 euros minimum. For example, a second Livret A with a balance of 10,000 euros could be hit with a fine of 200 euros, followed by its forced closure. The amount is not gigantic but you are now guaranteed to get caught: you might as well not do it to avoid exposing yourself to a fine.

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