Which regulated booklets to choose?
Tax-exempt booklets are all regulated by the state, which sets the rules for interest rates and operating characteristics. Note however that only booklets A, LDD (sustainable development booklet), LEP and young booklet are also exempt from social security contributions.
We propose you to take stock with the tax-free booklet and to see together the characteristics of each and the totals possible.
The booklet A
We no longer present the famous savings booklet that was once the preserve of the Caisses d’Epargne and La Poste (now Banque Postale).
Presented today by all network banks and online, it has something to seduce by its flexibility of use, the safety of its performance and of course its exemption from taxes and social security.
At 2.25% (October 2011), opening an A booklet is a good deal, even if the deposit remains limited to 15,300 euros.
The sustainable development booklet
Formerly known as CODEVI (Industrial Development Account), it became on 1 January 2007 the sustainable development booklet. It is the ideal complement to the A booklet for those who want to stay within the framework of tax-free booklets. The cumulation of these two booklets thus makes it possible to invest up to € 21,300, the ceiling of the sustainable development booklet being € 6,000.
The young booklet
It has two different characteristics compared to the two previous tax-free books. First, the holder must be at least 12 years old and at most 25 years old and his rate is left to the appreciation of the banks.
State regulations are limited to imposing the rate of livret A as minimum return. Thus, the rate of youth booklet varies significantly from one bank to another and it is therefore useful to compete before subscribing.
the popular savings booklet
Aimed at low-income households, since 1982, the popular savings account or LEP has been able to save up to € 7,700 tax-free at a preferential rate of 2.75%. To qualify, you must not have paid more than € 760 in income tax (2011 Income Tax Notice 2010).
Although with special features, the home savings account is part of our list of tax-free savings books. Unlike its big brother, the new housing savings plan, the CEL rate (1.50%) is not very exciting, but has some advantages if you are preparing to realize a real estate project since you can in the phase loan, to benefit from a loan of up to € 23,000 at a preferential rate.
October 1, 2011
Minimum to leave
|A booklet||2.25%||€ 10||€ 15,300||€ 10||1 booklet A or blue per person|
|Blue booklet||2.25%||€ 10||€ 15,300||€ 10||1 booklet A or blue per person|
|Sustainable development booklet (LDD)||2.25%||€ 15||€ 6,000||€ 15||Ex CODEVI|
|Young booklet||From 3 and 3.75% depending on the banks||€ 15||€ 1,600||€ 15||Reserved for 12-25 years old|
|Popular savings account (LEP)||2.75%||€ 30||€ 7,700||€ 30||Reserved for non-taxable persons|
|Housing Savings Account||1.50%||300 € then 75 € mini by deposit||€ 15,300||300 €|
|Housing savings plan||2.50%||220 € then 540 € per year||€ 61,200||$ 220||Floor rate|
Cumulative of several tax-free books
The only rule that applies to the accumulation of regulated booklets is that you can not hold more than one A (or blue) booklet. The only exception to this rule is people who, before 1979, opened a blue passbook at Crédit Mutuel and an A passbook at the Caisse d’Epargne or La Poste.
The law punishes fraudsters even if there are no true cases to date. Banks routinely check whether the holder of a new passbook A holds other similar transactions in other institutions.
The penalties provided for are tax-related with possible imposition of the “faulty” booklet A and possibly a fine.
How to place outside regulated booklets
Despite their attractiveness, regulated savings transactions may be insufficient given the government’s filing limit.
In this case, the best rates of bank booklets have something to seduce, even if this type of savings account does not escape the tax. The great booklets, ie those offered by online banks are attractive. For example Bforbank offers a rate of 5% gross (before tax) for 3 months up to 100 000 € deposit and 2.5% gross. (offer as of October 1, 2011, subject to change at any time).
Taxation of unregulated transactions
The major difference between regulated booklets and other savings accounts is the taxation of interest for the latter. However, you have the choice between declaring yourself the annual capital gain on your tax return or opt for the levy.
Count in this case 19% plus social security contributions of 13.5% (since 1 October 2011).
This choice is made according to the tax situation of each. Thus, if you are in a marginal high tax bracket (30% at least), you have every interest in opting for the levy discharge. Ask your banker to simulate the cost in both situations.