all that may soon change for you

Livret A, sustainable and solidarity development booklet, housing savings plan… Regulated savings represent 14% of the financial savings of French households, relationships the Bank of France in its annual report on regulated savings. Its total outstanding amount therefore amounts to almost 834 billion euros. While these investments are often criticized for their low level of remuneration, they are very low risk and that is why they are reaching out to so many families.

Livret A remains the favorite savings tool of the French. In France, its number was 55.7 million as of December 31, 2021, of which 54.9 million held by individuals. However, in his report on regulated savingsthe Banque de France showed that livret A and the Brochures on sustainable and solidarity development (LDDS) focus more on wealthier and older families.

In fact, the two saving modes allow you to accumulate up to 22,500 euros for the booklet A and 12,000 euros for the LDDS. They therefore make it possible to obtain a total ceiling of close to 35,000 euros, while interest is exempt from tax.

Booklet A, LDDS: their ceiling soon reduced?

To answer this, the Court of Auditors explored streets with the aim of limiting this ceiling, Boursorama reports. In particular, the merger of the two savings instruments was studied. It would allow limit the ceiling to that of Livret A, or 22,500 euros.

The other avenue explored is to keep the two brochures while limiting their overall ceiling to a maximum of 25,000 eurosthus limiting the benefit to wealthy families.

However, the banking profession has expressed its reluctance to accept these two measures, which have therefore been abandoned for the time being. In question, the complexity and the cost too high that they might represent.

But the Court of Auditors has studied other ways to answer this problem and has therefore thought about taxing these books. What does this really mean for your savings?

Livret A, LDDS… Towards taxation?

The Court of Auditors found it possible taxation of regulated savings accounts. In fact, at present it is estimated that holders of booklet A or LDDS would be exempt, on average, from 8 euros, while the taxation of contracts oflife insurance or PEA it would respectively reach more than 90 euros or 40 euros per family, explains Boursorama.

Therefore, in the eyes of the Court of Auditors, the effect of taxation on savings accounts the reallocation of the savings in question in favor of riskier products would be negligible while thepolitical impact that such an action could generate would be remarkable … Your PEL could also be changed very soon and this is not good news.

Will the Home Savings Plan be changed soon?

The housing savings plan (PEL) is an unprecedented long-term savings tool. In fact, if the risks involved are almost nil, the average rate for ELPs opened before 2011 is 4.51%. It is therefore quite natural that it has established itself in many French savings plans.

However, it was deviated from its original function which consisted of promoting home ownership and therefore generate home loans. The Court of Auditors now considers the PLA to be a source of cost for Public finance and for the banks and therefore wants to make sense of it for reasons of general interest

These changes could take various forms, such as the unilateral modification of contracts by banking institutions, the dissuasion of individuals from maintaining their ELP, thanks to a tax leverage o modification of the legal framework of existing contracts.

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