The A booklet and the sustainable and solidarity development booklet or LDDS are on the rise. The collection of these regulated savings products is increasing: €35.2 billion in 2020 compared to €16.6 billion the previous year. The record in terms of collect dates back to 2012, a year when investments garnered no less than €49 billion.
The focus on regulated savings products
Not surprisingly, both investments that savers French plebiscite are part of the big family of regulated savings. The name says a lot about this category of investments: the accounts and savings books operate according to the conditions established by the public authorities – their interest is, for example, exempt from tax. This applies to booklet A and at LDDS but also to young booklet, at blue booklet or even at popular savings account.
Booklet A and LDDS: similarities and differences
Besides the fact that these are two regulated savings products, some interesting common points are worth highlighting. Thus, for both, the saver can carry out any transaction free of charge (opening, deposit, withdrawal, transfer, etc.). Added to this is attractive taxation, interests being exempt of income tax and of social contributions. Investment security also comes into play. In fact, the State guarantees 100% of the funds saved in a Livret A or LDDS – no one loses their money even in the event of bankruptcy of the bank in which the account was opened. It is no coincidence that, in times of crisis, collection increases considerably. The French see it as “ shelters » safe to put their money, while waiting for the situation to improve. The year 2020 was no exception.
But if these two savings products are often presented as fraternal twins, this is because there are notable differences. The first of these concerns subscription. This is possible, for booklet A, for any adult or minor, with the only condition being a deposit of at least €10 upon opening – or even €1.50 with the Postal Bank.
Opening an LDDS is in principle reserved for adults. It is however possible for a fiscally domiciled minor in France if he meets certain conditions. The person concerned must in particular have his own income and no longer be attached to the tax household of their parents or guardians. For subscription to the booklet, if the legislator does not indicate an amount of deposit minimum, establishments in practice require an initial payment of €15.
The two savings accounts also differ from each other in terms of their investment limits.
The deposits are capped at €22,950, excluding interest, for an A booklet, and €76,500 if the booklet belongs to an association. For a sustainable and united development booklet, the deposits cannot exceed €12,000 since October 2012. It is nevertheless interesting to note that these two investments are cumulative. Thus, a person can in principle invest up to €34,950, excluding interest.
Please also note that since October 2020, the holder of an LDDS can use part of their investment to donate it for the benefit of players in the social and solidarity economy. The saver is free to choose between give a part of his capital or all or part of the interests. In practice, it is up to the bank to explain the different options that present themselves, in particular by providing a list of at least ten companies engaged in the social economy and united. When the saver will have selected the companies to which he wishes to make donations and the amount of these, the bank will make the payment directly via the LDDS without going through the current account. This operation is not possible for booklet A.
