LDDS 2023. The sustainable and solidarity development booklet is a secure savings investment with a similar return until 2025. Everything you need to know.

It is the cousin of the booklet A. The booklet of sustainable and united development (LDDS) follows the same banking trajectory as the preferred investment of the French. The rules are the same for this savings device, which anyone can open to take advantage of its stable return. As this is modeled on the Livret A, the rate currently in force will remain the same until the beginning of 2025. So how can you benefit from this system? What interests can we benefit from?

The ceiling for the Sustainable and Solidarity Development Booklet is set at 12,000 euros, compared to 6,000 euros previously. It is higher than the ceiling offered on the LEP (10,000 euros), but remains half the ceiling offered on the booklet A (22,950 euros). Like other savings products, in particular regulated savings products, the ceiling of the LDDS or LDD can only be exceeded by the capitalization of interest. As soon as you have reached the ceiling of 12,000 euros, it will no longer be possible to deposit funds on the latter. Remember that the capitalization of interest has no limit on your LDD.

Like the Livret A, the rate of the Livret de développement durable et solidaire is increased to 3% until 2025. This rate combines the rates observed on the money markets and the latest measurement of the consumer price index. The inflation rate taken into account is smoothed over six months, in order to stabilize the return on passbook accounts. In the same way as for the yield of the Livret A, the rate of the LDDS is revisable twice a year, on February 1 and August 1, but Bruno Le Maire, Minister of the Economy, having announced that the rate of the livret A would not change for 18 months, so that of the LDDS should also remain stable.

Within the framework of the LDDS, the banks must use the sums collected to grant loans intended to improve the energy performance of housing, at attractive rates. For the majority, it is energy saving work in individual or collective dwellings which serve as main residence, secondary house or rentals. Works such as thermal insulation, temperature regulation or energy production fall completely within the scope of the LDDS. The banks, on the other hand, give their approval or not concerning the eligibility of the potential works according to the quotes proposed.

The LDDS can be granted to an individual, to condominiums, and even to building professionals for certain specific works. The duration of the loan is at the discretion of the banking institutions, in particular depending on the solvency of the borrower but also on the nature of the work itself. No rate is imposed by the public authorities, however, the banks must offer you attractive rates.

Here, you are confronted with two booklets very appreciated by the French. However, there are important differences between the two. First of all, I deposit limit. For an LDDS, the ceiling is set at 12,000 euros, without taking into account the capitalization of interest. The booklet A is capped at 22,950 euros. The rate is the same for both booklets, 3% on February 1, 2023.

The LDDS is intended to finance energy saving work and to finance the social and solidarity economy. While the livret A is more like precautionary savings, an account on which we advise you to leave two to three months’ salary to cover an unforeseen event.

Note that it is possible to combine these two booklets. Generally, an LDDS is opened when you have already reached the ceiling of a booklet A.

Any major person domiciled in France for tax purposes can open a sustainable and solidarity development booklet (LDDS). The number of LDDS is limited to 1 per person, or two per tax household. French law does not provide for any minimum amount to open an LDDS, however, the vast majority of banking establishments require an initial payment of 15 euros, sometimes 10 euros. Payments and withdrawals are completely free, exactly as on the booklet A. Finally, whose tax domicile is located in France can open an LDDS, if he has personal income and is no longer attached to the tax household of his parents. The lifespan of a Sustainable and Solidarity Development Booklet is unlimited and the funds are available at any time.

To open a Sustainable Development Booklet, it is necessary to fulfill several conditions, and in particular a minimum age condition. Indeed, it is mandatory to be at least 18 years old. Also, you must have your tax domicile in France and not already hold another LDD.

With a rate fixed at 3% since February 2023 after it was at 2% in January, here is the interest you can expect to receive at the end of the year if, on January 1, 2023, you had savings on this passbook …

LDDS interest is calculated fortnightly, on the 1st and 16th days of each month, like other regulated savings products. Payments bear interest on the account on the first day of the fortnight following the operation. Withdrawals, on the other hand, cancel the interest on the current period. Their value is applied on the last day of the previous fortnight. The total interest is capitalized and appears on the account on December 31 of each year.

The interests of the Sustainable and Solidarity Development Booklet are totally exempt from income tax and social security contributions.

Closing a Sustainable and Solidarity Development Booklet is free. It can be done in branch or by regular mail to the underwriting establishment. You will then have to specify in your termination letter the references of your passbook account, as well as the details of the account to which you wish to transfer your balance. Namely: if the account is closed during the year, the interest capitalized since the beginning of the year is credited on the day of closing.