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Can we pay our expenses with our livret A?


Despite the years and the evolution of the financial situation, the livret A is still today the preferred savings plan of the French (more than 55 million have one). Ease of opening and access to the sums invested, the strengths of booklet A always remain the same despite stagnant interest rates. The livret A is even so popular that it has been possible since 2008 to carry out direct debit transactions that almost make it a second current account.

What possible deductions from the Livret A?

The decree of 4-12-2008 made it possible to broaden the prerogatives of the Livret A account to adapt it to the expectations of certain taxpayers who wished to be able to take direct debits from it to pay certain charges. Banks have since that date the possibility of allowing their customers to use their Livret A to pay some of their taxes: income tax, housing tax, property tax and audiovisual license fee. It is also possible to pay water, gas and electricity bills, as well as the payment of rents for residents of low-income housing (HLM) and certain other types of social housing, by direct debit from savings account A. A decree of 17-1-2022 also introduces the possibility of now paying your telephone or Internet bill by direct debit from the Livret A account.

What amounts can be withdrawn from a livret A?

Withdrawals from savings accounts are nevertheless much more regulated than those from current accounts, starting with the amount of sums that can be withdrawn. The sum withdrawn must be at least ten euros, with the exception of La Banque Postale for which the threshold is lowered to 1.50 euro. Conversely, there is no maximum ceiling, but unlike a current account, the direct debit will be automatically blocked if it makes the account debit. You should also know that financial transactions on the Livret A account are not limited to direct debits. It is also possible to receive social benefits paid by public authorities and Social Security, as well as pensions for public service agents.

How to set up direct debit on a livret A?

Be aware, however, that if these direct debits are theoretically possible, they are not always guaranteed by the banking establishments. Only La Banque Postale can automate direct debits from the Livret A; for other banks, check whether the contract for your savings account allows you to carry out this type of operation. If this is the case, you can set up these direct debits online via your bank account, but also at the counter of your reference institution on presentation of proof of identity, or by mail via a direct debit authorization form.

(By the editorial staff of the hREF agency)

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