How to choose your savings booklet? Information provided by Café de la Bourse • 15/07/2023 to 09: 10

The bank book can not bear any opening, management and closing costs. A minimum payment of around € 15 is requested at the time of subscription. Generally, there is no ceiling of payments.

Bank savings book and “super booklets”

The bank savings book is distinguished from regulated booklets despite several common points. Its remuneration, freely fixed by each financial intermediary, can be interesting during promotion periods. However, the interests received are taxed. Which limits the performance of this savings product.

• Liquid savings
• Open a bank savings book
• Calculation of interests
• Taxation of bank savings books

Liquid savings

A bank savings book, called a banking booklet or sometimes “super booklet”, is a savings product whose remuneration (the interest rate) is set by the establishment marketing it. Funds filed on a bank savings book are available at all times. A banking book can be closed at any time.

To know

The bank savings book is distinguished from regulated booklets (Livret A, Sustainable and Solidarity Development Booklet, Popular Savings Booklet) whose remuneration is fixed by law, interests exempt from all taxation and panels capped.

Open a bank savings book

A minor can open a bank savings book with the agreement of his legal representatives. To open a savings book, you must sign a contract with a financial institution. The contract must specify the deposit and withdrawal rules (minimum amount of deposits, date of value of deposits and withdrawals) and remuneration (interest rate, methods of calculation and payment of interest).

The bank book can not bear any opening, management and closing costs. A minimum payment of around € 15 is requested at the time of subscription. Generally, there is no ceiling of payments.

The remuneration of bank savings books

To attract new customers, financial institutions communicate on attractive rates in the context of promotions. The amount of deposits is often capped and the duration of the limited promotion. This past period, remuneration falls to a “normal” level. Outside the promotion period, the remuneration of banking booklets is in September 2022 around 1.5 % (excluding taxes) in a general context of return of inflation and rates of rates. Thus, several savings booklets have seen their remuneration increase on August 1, 2022: the rate of the sustainable and united development booklet, the blue booklet and the young booklet increased to 2 %, that of the 1.25 %housing savings account and that of the business savings book (LEE) at 1.50 %.

You can have several bank booklets.

Calculation of interests

The interests of a bank savings book are calculated on the 1st and the 16th of each month. The date of value taken into account for the calculation of interest varies according to the date of the operation according to the following terms:

Operation	Until the 15th of the current month	From the 16th of the current month
Deposit	16 of the same month	1st day of the following month
Withdrawal	Last day of the previous month	15 of the month

As of December 31 of each year, the interests accumulated over the year are capitalized (they are added to the capital and in turn produce interest).

To know

Given the value dates, it is preferable to make payments on 15 or 30 of the month and withdrawals on the 1st or 16 of the month.

Taxation of bank savings books

Since January 1, 2018, the interests of the booklets have been submitted by default to the single flat debit of 30%. Taxation is operated every year through your financial intermediary.

If this option is more advantageous for you, you can choose to be imposed on the progressive income tax scale (IR).

The bank savings book is a savings product accessible to all. Its remuneration is set by each financial institution offering this type of product. The interests perceived are taxed. Excluding promotion, the remuneration offered is around 0.4 % gross.

How to choose your savings booklet ?

The French are fond of banking booklets and it must be said that the choice in this area, overwhelming, reflects this enthusiasm. It is also sometimes difficult to make your choice between the various regulated savings booklets and the savings booklets of the banks of banks. So how to choose ? On which elements should your choice be based ?

Discover in this article the 4 criteria to take into account to choose the right bank booklet.

His personal situation

First, you will have to select your savings book according to your personal situation. For example, booklet A does not require having French nationality, or even having its tax residence in France. On the other hand, if your tax residence is outside France, you will not be able to open a LDDS (Sustainable and Solidarity Development Booklet), a LEP (Popular Savings Booklet), or a Young Livret.

A savings book can also include income conditions. Thus, the LEP is only accessible to people whose income does not exceed a certain ceiling (variable depending on the place of residential).

Finally, note that the young booklet includes age -related restrictions. It is indeed reserved for 12-25 year olds.

The ceiling of the savings booklet

Once you have defined which banking booklets you are eligible, it will then be time to ask you what amount you want to place. So, if you want to finance your next vacation, the LDDS and its 12,000 euros ceiling may suit.

You want to place 3 to 6 months of expenses to build up an emergency fund ? Booklet A and its 22,950 euros ceiling may be considered.

You want to change your household appliances ? Think of the LEP and its ceiling of 7,700 euros

The young booklet, intended to finance the leisure of 12-25 year olds includes a ceiling of 1,600 euros.

You want to place much more important sums, for example to keep an inheritance or the product of the sale of real estate before reinvesting it later ? You will be able to turn to the classic banking booklets offered by the various banking establishments or online savings specialists who offer savings booklets without ceilings or with very high ceilings (in the order of several hundred thousands, or even millions euros).

Bank -Bank performance

You will also have to pay attention to the return on the savings booklet. These are indeed very variable depending on the envelope.

For example, booklet A and LDDS have an interest rate of 3 % since February 1, 2023 and this rate could be revalued at 4 % on August 1, 2023.

The young booklet offers a rate at least equal to booklet A but can be superior to it. Banks can indeed fix it as they see fit provided that remuneration is identical or higher than that of booklet A which serves as a reference.

The LEP, reserved for modest income, allows you to benefit from a much more enticing rate than the booklet A. The LEP interest rate is currently 6.1 %, that is to say above inflation. It is the only banking book that displays a positive real return.

Taxed bank booklets most often present rates lower than booklet A, but some players still seek to offer attractive return with boosted rates for a few months, then go back to a lower level. It will then be wise to calculate the performance of the placement taking into account both the boosted rate but also that to which it will go back the special offer once passed. Do not neglect welcome, frequent on the classic booklets of banking establishments, which can boost the return on the Savings Booklet.

Taxation of the Savings Booklet

Finally, it is also essential to be interested in the taxation of the booklet. The regulated savings booklets (Booklet A, Young booklet, Popular Savings Booklet, and Sustainable and Solidarity Development Book) are exempt from taxation. You will therefore not have to pay income tax or social security contributions on the gains.

On the other hand, the classic banks of banks are taxed. This means that gains will be taxed by flat tax at 30 % (12, 8 % income tax + 17.2 % of social security contributions) or, if this is more advantageous for you, at the scale of the income tax + 17.2 % social security contributions.

Also note that an exemption from levy of savings book interest is possible if the amount of the reference tax income does not exceed € 25,000 in revenues per year for single, divorced or widowed taxpayers and € 50,000 per year for taxpayers subject to common taxation. You will have to make your request no later than November 30 of the current year so that it can apply on the interest acquired during the following year (N+1). If your request is sent after November 30, then it will apply to the interest acquired during year N+2.

We therefore see that, depending on its profile, the tax impact is more or less strong on the real gains of the booklet. Taxation is therefore not to be overlooked when choosing your savings book.