Livret A, LEP: the drop in their rate on February 1, 2025 is confirmed

With inflation still contained in November, the prospect of a reduction in the rate of regulated savings accounts is becoming clearer for 2025. What will be its magnitude?

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The trend is confirmed. According to provisional data from INSEE, published this Thursday, November 30, inflation should stand at 1.3% over one year for the month of November. A slight rebound compared to the 1.1% price increase recorded in October, but insufficient to halt the decline which is looming for the rates of regulated savings accounts. Indeed, the yields of the latter – Livret A, LDDS, LEP – have to do partly or entirely with the level of inflation. For the next revision of their rate, which will take place on February 1, 2025, a reduction in their remuneration now seems inevitable.

A Livret A rate close to 2.5%?

To determine the future Livret A rate, two key variables come into play. The first is the average of annual inflation excluding tobacco over the six months preceding the revision, i.e. between July and December 2024, the new rate from February 1 being announced in mid-January. Thus, with INSEE data published today, the level of price increases is known for 5 out of 6 months: currently, this average stands at 1.46% between July and November. The second variable is based on the average interbank rate (€STR), which reflects the rates at which banks borrow on a daily basis. These rates, stable around 3.45% for several months, should remain at this level until the end of the year. By combining these two elements, the Livret A rate should be adjusted to 2.5% on February 1, 2025, compared to 3% currently.

LEP still supported at 3%

For the Popular Savings Booklet (LEP), the drop could be more marked, because its rate is strictly indexed to the average inflation excluding tobacco. In theory, it could therefore fall from 4% currently to 1.4%, the strict average of inflation over the last five months. However, two safeguards protect LEP holders from too sudden a fall. On the one hand, the regulations require that the LEP rate be at least 0.5 points higher than that of the Livret A, which would keep it at 3% if the Livret A rate fell to 2.5%. On the other hand, the Banque de France and the Ministry of the Economy could, as during the last two revisions, decide to intervene to limit the damage, by giving a new “boost” to the remuneration of this reserved booklet to the most modest savers.