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Unfamiliar to the general public, term accounts offer a risk-free and guaranteed return. An interesting addition to make your cash flow work.
Term accounts, or CATs, are savings products available to individuals and businesses. The invested capital is guaranteed and the interest rate is known in advance. The condition: to leave the funds for a specified period. Investors must make their deposit in one go. The account will then be locked for a period ranging from a month to several years. During this phase, the investor cannot retrieve his stake, unless penalties are incurred. Beyond these broad outlines, the characteristics of term accounts are variable. They are determined by a contract concluded between the bank and its client. The term, any further conditions, and the rate can be negotiated, under the principle of contractual freedom.
The term account can be a good option for individuals with idle funds in a checking account who are looking to invest for the mid-term without taking any risk. Even though it is primarily used by businesses for treasury management, it is infrequently found in the assets of private individuals who often need to request it. Banks don't advertise this type of investment often. Yet, most of them have one or several such contracts in their catalogs. Even though they're usually reserved for the bank's customers, don't hesitate to consult multiple institutions to find the one that suits you best. The choice of contract will largely depend on the offered interest rate. Unfortunately, only a few banking establishments publicize their rates. But in an era where the returns from the savings account A, the Sustainable and Solidarity Development Account (LDDS), and the Popular Savings Account (LEP) have again become very attractive, don't expect to get a competitive offer. Moreover, the indicated rate is gross: unlike the above-mentioned regulated booklets, gains are taxable. The interests are therefore subject to income tax in the category of income from securities and to social contributions. A term account is therefore a good instrument, but only for those individuals who have already maximized their A booklet and LDDS use.
The current remuneration range for term accounts is between 2 and 4% gross per year, that is to say before taxes. Boursorama Banque has just launched a new term account with a 3% gross rate over 12 months for a minimum deposit of €30,000. The contract does not include management fees. PSA Banque offers the CAT Distinguo, for 1, 2 or 3 years, with actuarial rates of 2.60%, 2.70%, and 2.80%. At CIC, the Evolutif Account is available from €150, with an interest rate that increases every year. Starting at 2% gross the first year, it reaches 4% in the 5th. Over 5 years, the overall remuneration rate thus reaches 3%. At Credit Agricole, the Blue Square offer is composed of a housing savings plan and several term accounts. This combination allows benefiting from the loan rights of the PEL and the remuneration of the term accounts. The duration of the placement is 4 or 8 years with an initial deposit of between €6,000 and €37,500.
In a term account, the interest rate can be fixed, progressive, or variable. An important distinction to grasp before signing. Fixed-rate accounts offer a rate that remains the same until the contract ends. This is the case for the majority of term accounts on the market. Progressive-rate contracts see the rate increase in regular, pre-defined stages. The revision may be monthly, quarterly, annually... The longer the funds are locked in, the more the rate can increase. In reality, this kind of contract is made up of several term accounts, each having a fixed rate and succeeding one another. Finally, there are variable rate term accounts. The earnings are indexed to a reference index. Thus, the rate fluctuates based on the changes in this index, either up or down. The periodicity of interest payment varies from one contract to another. It may be monthly, quarterly, annually, or even in-fine, that is, at the end of the contract. Apart from the latter case, they are paid directly into the term account and are capitalized, which means they are added to the capital and therefore included in the calculation of the next period's interest. The rate can also be presented in two ways: the nominal rate or actuarial rate. The nominal rate is the one that will be applied each year. So, if the nominal rate is 3% per year, the deposit will be rewarded at a rate of 3% gross for each year and pro rata temporis in case of an incomplete year. The actuarial rate corresponds to the real annual yield of the investment over the entire investment period. It will take into account all interest, whether paid or not, when the term of the term account is more than a year. This rate is what will allow for the comparison of investments. Some contracts may also impose specific conditions. This could involve opening several term accounts with different operations, or the obligation to subscribe to other investment products. This is typically the case with the offer from Crédit Agricole mentioned above, which links term accounts with a PEL.
Opening a term account requires the signature of a contract between the banking institution and its client. This contract must include minimum information. This includes: - the minimum deposit amount and the term deposit ceiling, - the investment duration, - the rate, calculation method of remuneration, and interest payment dates, - potential penalties applicable in case of early withdrawal of funds, - potential contract conditions, such as the need to subscribe to other savings products or contract renewal. Unlike traditional savings accounts, the term account only permits a single deposit, which occurs at the time of contract signature. Once the investment is made, it is no longer possible to withdraw money before it matures, or add to it. Thus, individuals and businesses should ensure they invest treasury funds that are not intended to meet unexpected expenses or to carry out medium-term projects.
Term accounts are available in most banking institutions, but they are infrequently offered. Most of the time, banks remain very discreet about the remuneration rates they offer, making comparison difficult. However, individuals and businesses would do well to play the competition in order to find the term account that best meets their expectations. The issue is that traditional banks reserve term accounts for their customers. In other words, to open a term account, it is often necessary to open a current account at the bank in question. The advantage of opening a term account thus sometimes becomes null, as it requires increasing one's banking fees or transferring one's accounts. This difficulty is incomprehensible for businesses that have treasury funds to invest, particularly since term accounts could potentially attract new clients given the challenges of finding investment products. Unfortunately, there is no equivalent to the Livret A saving account for businesses!
Rates vary according to periods and markets, including benchmark rates from the European Central Bank and the Euribor.
Bonjour, Les comptes a terme vont il encore monter?
quel taux espérer? en octobre?
sachant de en aout j ai placer en CAT a 4.20%
merci
Taux du CAT progressif de CIC est de 4% annuel sur 5 ans et non 3% comme annoncé.
Cette màj de Juillet n'est pas à jour !!
Contrairement à beaucoup d'établissements l'info est sur leur site avec un simulateur ce qui rend facile la confirmation du Taux au bout des 5 ans du contrat.
