Risk-free Investments. Do the various risk-free investments still offer satisfactory returns? How to make the most of the products from these media? Follow the guide.
Investments without risk, with little income
Livret A, LDD, or young people’s savings account: all these investments with guaranteed returns – in addition to being tax-exempt, their remuneration decreases from year to year. Livret A is currently only used for 1%, largely due to the slowdown in inflation in recent years. By counting inflation, the exact yield of the livret A and the other booklets linked to it falls to 0.75%.
The Livret A retains all of its other assets, including the tax exemption of its interests and the availability of funds throughout the period of detention. However, you are free to subscribe to a super bank book, taxed, whose returns are also guaranteed. These super booklets offer exceptional remuneration during their promotional period, which makes them excellent supports for short-term investments of a substantial sum of money.
Life insurance and the home savings plan
Other investments also distribute guaranteed returns, such as life insurance in euro funds. The best contracts on the market are currently showing returns around 3%, with the added bonus of reduced taxation for withdrawals. Capital gains realized on life insurance are in fact exempt from tax from the eighth year of ownership, up to a limit of 9,200 euros per year for a couple and 4,600 euros per year for a single person.
The home savings plan is another investment with a guaranteed return, offering more substantial remuneration than regulated savings accounts. Since February 1, 2015, the PEL has in fact served an annual interest rate of 2%, unchanged over the entire duration of the contract. Interest earned on this plan is also exempt from income tax.
Further more follow our next articles.