What are they?
You may have heard of a Compte sur Livret, Livret A, LDD or LEP. If so you may know they are simple instant access savings accounts, some available to both resident and non-residents living in France.
Generally these instant access accounts have no opening or closing fees and are easy to manage online.
These accounts can be opened with a small amount sometimes as little as 10 to 15€ euros, some with a maximum savings limit others with no limit at all. These accounts can be opened for children as well as adults.
You can set up regular transfers from your current account in to these types of accounts. If the need to get your hands on some of the saved funds you can transfer back into your current account online or if a CA Britline customer by giving us a call.
TIP!-Always try and move your funds back in to your current account taking in to account the system of interest calculation, in order to time your withdrawals to maximise the interest earned. The same rule should be applied for the deposits made in to your savings accounts.
Currently the rates of interest on these types of accounts are relatively low ranging from 0.10% to 1.25% before tax per annum.
Epargne Logement accountsThe main purpose of these types of accounts is to allow you to save in order to buy or extend a French property later on down the line. As your account balance builds up over time it will allow you to benefit from a reduced mortgage rate should you wish to buy a French property or extend the one you have. There are two types of these accounts available:
The Compte Epargne Logement which is instant access and allows you to set up regular or adhoc deposits to it from a minimum of 75€.
The Plan Epargne Logement where deposits are obligatory. Depending on the frequency of your regular deposits these can be for as little as 45€ up to 540€. This account does not allow partial withdrawals therefore withdrawals result in the closure of the account.
These types of accounts can be ideal what with interest rates being so low on deposit accounts. Inflation in France is currently around 1.9% and in the UK 2.4% therefore why not consider diversifying your investments in to shares, bonds and managed fund investments.
There are two types of share accounts for residents in France called the CTO and PEA. The PEA is made of up of European shares and managed funds.
For non-residents the CTO account is available. This is a normal share account based on the French and international stock market.
In France 39% of households financial assets are held in Assurance vie policies.
At CA Britline we are able to provide you with this type of investment vehicle if you are a resident in France. These types of accounts hold tax advantages when in coming to taxation on revenue (impots) and inheritance tax. Contrary to popular belief your funds are not blocked and you can make a withdrawal at any time. There will be less tax to pay however on withdrawals if you make your withdrawal once the policy has been opened for at least 8 years.
If you would like to discuss our savings products at CA Britline whether resident or non-resident in France click here.