To find an investment that pays more than the livret A, we surveyed banks and financial institutions to see what we could find. Of course, in our criteria, we only selected products that are fairly comparable to compare only the best savings. And the good news is that we found an investment that pays more than the livret A!
Investment that pays more than the livret A: under what conditions?
► Find a savings account that returns more than the livret A
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Before looking for a more profitable investment than the livret A, it seemed essential to define very strict selection criteria to avoid all the pitfalls of dubious financial products.
First of all, we only selected organizations that have a physical presence and are officially registered by authorities such as the Banque de France or the Autorité des Marchés Financiers.
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Next, we wanted to keep only products with the same essential qualities as those of the livret A:
- No risk on the invested amounts which must be guaranteed
- No fees: no opening, management, payment, or withdrawal fees
- Money available: the ability to withdraw all or part of your savings if necessary
It is only on these bases that we began to search for an investment that yields more than the livret A. And the only product we identified that met all these criteria was the super savings account. Indeed, finding an investment that pays more than the livret A is not very difficult, but finding an investment that offers the same flexibility and risk-free savings is much more complicated:
- Life insurance: while the best life insurance can be risk-free (euro life insurance) and is an investment that pays more than the livret A, the money is not available (not before 6 to 8 years or otherwise loss of tax benefits) and there are at least management fees.
- Home savings plan: This regulated product gives more than the livret A, provided that the savings are locked in for at least 2 years; otherwise, the interest rate drops to the level of the home savings account which is currently at 0.75% and there are also social security charges to apply.
- Stock market: we didn’t really look into this, but it is necessarily risky and there are fees… now, it is clear that it can do better than the livret A.
- Popular retirement savings plan: it works like life insurance… worse in our opinion, as we demonstrated in our article on the PERP.
- Sustainable development brochure: it works like the A booklet and is paid at the same rate; by definition, it cannot be an investment that pays more than the livret A.
- Term account: This is a product like a consumer loan but reversed: you lend money to the bank after a set period and rate. So the money is locked… and besides, it really doesn’t bring much more at the moment…
CONCLUSION: The only product comparable in operation (free, money available, and risk-free) to the A booklet is therefore the super bank savings account. Now we need to see if the best bank savings account is indeed an investment that pays more than the livret A:
Finding an investment that pays more than the equivalent A tax booklet
The bank savings account has two major differences compared to the livret A. The first is in its favor: the bank savings account is not capped or is capped very little. While the livret A stops at 22,950 EUR, most bank savings accounts have no cap or generally exceed 1 million euros.
taxation of the savings account On the other hand, the complicated point of the bank savings account is that it is taxed. To ensure that it is an investment that pays more than the livret A, it is therefore necessary to take into account the taxes that will be paid on the interest it will earn. We have written an article dedicated to this that outlines all cases and allows everyone to find their situation very easily.
Because the savings account can be subject to social contributions but also income tax. It is therefore necessary to adapt to each individual’s case. In our article, you will find a very simple way to determine what to expect and ultimately know if it is an investment that pays more than the livret A in an individualized manner.
But before we can conclude this article without going into overly detailed explanations, we propose to consider the maximum tax level that can be applied to the bank savings account, which is 40% (to the nearest decimal and except for those who pay really high taxes and already have to pay a lot of taxes on huge investments).
CONCLUSION: An investment that pays more than the livret A
We have therefore compiled one to find those that earn more than the livret A. And we did not find one investment that yields more than the livret A, but in reality, we found 2.
Hello bank savings account returns more than the livret A
As you can see in our savings account comparator, the Hello bank savings account is the savings account that earns the most today at a standard gross rate of 2.00%. If we apply the 40% tax regime, we get an equivalent net rate of 1.20%. This makes it an investment that earns more than the livret A since the latter is currently painfully at 1.00% remuneration.
The Cetelem savings account returns more than the livret A
The Cetelem savings account is, for us, the only truly interesting promotion at the moment. Indeed, this savings account offers a gross rate of 2.10% over 12 months. While other promotional rate savings accounts are largely limited to a duration of 3 months. This is what allows the Cetelem account to provide more than the livret A, as in net equivalent it offers 1.26%.