Livret A, PEL, youth book: are we heading towards the end of the tax exemption for regulated savings?

The Banque de France has published its annual report on regulated savings and it appears that the tax exemption for savings accounts is very expensive for the State.

Many investments constitute what is commonly referred to as regulated savings. Behind this term, savings whose interest is not taxable. Among the best-known investments of this type, we therefore find the livret A, the Housing Savings Plan (PEL) or the sustainable and solidarity development booklet (LDDS) and the youth booklet.

A considerable shortfall

The fact of not taxing the interest of these investments, like any source of income represents a certain cost for the State. A hell of a cost even since in 2020, the Banque de France estimates it at 1.1 billion euros in its latest report on regulated savings published on October 7.

It is therefore this operation, which is very advantageous for the saver, which is singled out by the observatory. The most interesting investment to date? The PEL, savings that cost three times more than the Livret A. The reason: “the exemption granted to all PELs dating from before March 2011, without any time limit, ā€¯points out Boursorama.

The advantages of savers called into question?

In its report, the observatory goes so far as to imagine the following scenario: if we relate the interest rate of these former exempt PELs to the current interest rate of this contract, which amounts to 1% gross, the revenues are already considerable.

With this change, these are 3.9 billion euros that could be generated. A boon for the French economy, which implies in passing a nice inflow of money in the coffers of the State.

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