“Livret D” at 3.5%: a trap for your savings compared to Bitcoin?

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https://cryptoast.fr/livret-d-a-35-un-piege-pour-votre-epargne-face-a-bitcoin/

Presented on October 28 by Charles de Courson, LIOT deputy for Marne, as a “major national loan”, the “Booklet D” promises a fixed rate of 3.5%, tax-free interest and payments of €1,000 to €60,000 blocked for 10 years. The idea is to borrow from the French rather than from the markets at higher rates: the LIOT group estimates the economy for the State at 7.5 billion euros over 10 years.

It was on October 30 that amendment No. I-3274 by MP Michel Castellani (LIOT) relating to this booklet D was adopted by 23 votes to 16, despite the unfavorable opinion of the government.

The voted text, however, remains very far from the promise. It only authorizes the Minister of Finance to offer individuals domiciled in France and French companies the opportunity to directly subscribe to State debt securities. All terms, including remuneration, are referred to a decree in the Council of State.

The rate of 3.5%, the ceiling, the blocking period and the tax exemption therefore do not appear there, any more than the name “Livret D”, which is not official. However, only the law can grant a tax advantage, a decree cannot. The Senate can further remove the measure during budget consideration.

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The timing is no coincidence: on October 21, France's ten-year borrowing rate exceeded 5% for the first time since July 2002. Borrowing at 3.5% from households would therefore cost the State significantly less.

For the saver, the calculation is less flattering. With inflation of 3.4% over one year in October according to INSEE, a rate of 3.5% only leaves a real return of around 0.1%. On €10,000, the €350 in annual interest would be almost entirely wiped out by the rise in prices.

As for blocking over 10 years, it seems particularly risky to us. Job loss, health problem, separation: a hard blow can occur at any time over such a long period. However, nothing says at this stage that it would be possible to recover the funds before the deadline, nor under what conditions, since the voted text refers everything to a decree.

Machine-translated from French