based on materials from the site - By Cointribune EN

From August 1, 2025, the Livret A rate will be reduced to 1.7%, which will negatively affect 58 million French people who save their money there. This strategic, yet unpopular decision reignites the discussion about access to fair and effective savings. In response, the Bank of France is reviving a long-underappreciated solution: Livret d’Épargne Populaire. In this struggle for yield, the gap between safety and effectiveness is once again evident.

In brief
From August 1, 2025, the Livret A rate will decrease from 2.4% to 1.7%, affecting 58 million savers.
This decrease is explained by the legislative indexing formula, despite moderate inflation of 0.9%.
The Bank of France warns of a better option: Livret d’Épargne Populaire (LEP).
The Bank of France is calling for the democratization of this still little-known product, especially among Livret A holders.
The decline of Livret A: a technical solution with serious consequences
The reduction of the Livret A rate to 1.7% from August 1, 2025, confirmed on Wednesday, July 16, by the CEO of Caisse des Dépôts, Éric Lombard, marks a turning point for millions of savers.
The information has been confirmed in strict accordance with regulatory requirements based on a legal indexing formula that takes into account inflation and interest rates. It is worth recalling that in January of last year, the same product showed a yield of 3%, having halved in just a few months.

While monetary authorities refer to the logic of the system, 'we strictly apply the formula provided by law,' as stated by the Bank of France, the specific consequences are felt immediately by 83% of French Livret A holders.
This decline in yield occurs against the backdrop of a significant slowdown in inflation. According to data published by the Bank of France, inflation in the first half of 2025 was 0.9%, making the new Livret A rate a product with virtually zero real yield. It should also be noted that:
The next rate adjustment will not occur before February 1, 2026, extending the period of low yield;
Livret A remains capped at €22,950, but this does not compensate for the yield reduction;
This decrease reduces the attractiveness of the product, especially compared to competing banking solutions;
For owners of modest savings who use this savings account... In this context, the Bank of France's call for the 'People's Savings Book' (Livret d’Épargne Populaire) takes on particular significance. However, despite the tangible benefits, this alternative has not gained adequate traction.

LEP: a certain alternative, but still marginalized
At a press conference on Thursday, July 17, François Villeroy de Galhau, Governor of the Bank of France, reminded that LEP is 'the most advantageous regulated savings product to date.'
Tax-exempt, reliable, liquid, and especially offering a rate of 2.7% until February 1, 2026, this account meets many criteria in terms of capital protection. However, despite clear access conditions (annual income of less than €22,823 for a single person or €35,012 for a couple), it remains extremely underutilized. Currently, 12 million LEP accounts are open, while 19 million French people would meet both income and accumulation conditions.
The Bank of France acknowledges that 'significant progress has been made,' notably with 5 million new LEP accounts opened between 2021 and 2024, but this is still not enough. The Bank warns of 7 million French people eligible to participate in the program who have not yet opened this product, although some of them already have Livret A.
The low deposit limit of €10,000 compared to €22,950 for Livret A does not justify this dissatisfaction. In reality, the transition to a more advantageous account is slowed down more by psychological factors, gaps in banking information, or even insufficient activity from the banks themselves.

In addition to LEP, savers wishing to diversify their portfolios in a declining interest rate environment have other options available. Cryptocurrencies, especially Bitcoin, seem to some to be a potential solution for preserving value or even achieving long-term profits. However, this type of investment requires a deep understanding of mechanisms, volatility risks, and issues of preservation and taxation. This is not a universal alternative, but rather a tool that should be approached with caution, provided that its fundamentals are thoroughly studied before making any investment decisions.
Aside from the immediate arbitration between two regulated products, this situation raises questions about the distribution of financial information and fairness of access to effective savings. The Bank of France appears ready to accelerate efforts in this area, particularly by publicly reminding about the real yield of LEP, which is nearly three times the inflation. However, the impact will remain limited until banks, consultants, and modeling tools fully integrate this solution into their recommendations for eligible households.

$BTC , $XRP , $BNB

#Сryptomarketnews , #TrumpTariffs

Here, in one news feed, we gather and publish the latest news from more than a dozen news websites and print publications regarding changes in the cryptocurrency market and global financial changes!!!

We do not provide recommendations or financial advice! We familiarize readers with the news of the financial world! Conclusions and decisions are made by each individually!!!

Welcome to us! There are enough news for everyone!!! 😉