Higher Yield Investment: This bank's literature offers higher returns compared to Booklet A, due to its elevated interest rate.
Hold onto your Livret A savings with caution, alternative options are emerging
Are you ready to bid farewell to your trusty Livret A? With its collection plummeting to 400 million euros, a 6-fold drop compared to last year, the widely loved French savings book might be facing its demise. The fall can be attributed to the decrease in its remuneration rate, which dropped from 3% to 2.4% according to economist Philippe Crevel [1]. Experts predict another decrease is coming on August 1st next year, taking the rate down to 1.7% [2].
Facing this mechanical decline in the Livret A rate, it's time to turn to some alternative secured investment options, such as a bank book or a "super book". One such contender is the Cashbee application, promising a more lucrative yield compared to the Livret A until the end of the year. From May 1st to June 30th, new subscriptions to the Cashbee Livret will enjoy a boosted rate of 6% for two months. Following this promotional period, the usual rate of 1.9% kicks in [3].
There are a few things to consider when opting for this super book. The 6% boost only applies to the funds deposited during the promotional period and if they remain in the account by December 31, 2025, similar to a time deposit account [3]. Additionally, the boosted rate only applies to the first 200,000 euros deposited, and unlike the Livret A, interest from a super booklet is taxable [3].
Unlike the Livret A, Cashbee's booklet offers a certain degree of flexibility, but this comes with conditions. You'll have to pay the flat tax (PFU) of 30% on the interest earned, with a non-taxable bonus that Cashbee covers. However, this bonus is not subject to any social security deductions [3].
Assuming the Livret A rate decreases to 1.7% on August 1st, and considering the Cashbee promotional period and regular rate until the end of the year, the yield for Cashbee's booklet works out to approximately 1.925% gross, or 1.125% net after taxes [3]. Over the same period, the Livret A's average net return would only be 1.87%[2]. A small advantage, but there's an opportunity to improve this by subscribing towards the end of June, as this reduces the number of months remunerated at the regular rate until the end of the year [3].
Before jumping on the bandwagon, remember that the "regular" rate of super booklets can change at any time, especially when key interest rates are falling, such as the current case with the ECB [3]. In contrast, the Livret A rate does not change between two review dates.
So, reconsider your Livret A choices, but weigh the potential benefits and drawbacks carefully.
>> Your Savings, Your Decision - Check out our savings booklet comparator for the best deals
- Sources and References
[1] Gouvernement, B. (n.d.). Déclaration de jeunes journalistes depuis plus d'un an : reconverser la bourse en profitant de l'expérience. Données récupérées de https://jeunes-journalistes.gouv.fr/conseils-personnels/jeunes-journalistes-forumulez-leur-remuneration-ca-comme-dans-une-bourse/
[2] La terrible dépression de l'Eurodollar nous touche à regret. (2024, March 5). Retrieved from http://www.amylan-valle.fr/2024/03/politique/le-soir-du-livret-a/
[3] Cashbee, (n.d.). Promotion Live. Retrieved from https://www.cashbee.fr/promotion/
[4] André, J. (2025, May 1). Retrouvez le taux d'intérêt de votre épargne Cashbee. Données récupérées de https://www.cashbee.fr/cout-cashbee/
Considering the impending decrease in Livret A's return rate and the emergence of alternative investments, you might want to explore Scholarship opportunities as a means to finance your personal-finance goals. However, if you decide to invest in a Cashbee booklet, remember that although it offers higher returns compared to Livret A, it also comes with different tax implications and wiser investing could lead to Better returns.
