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There are two good reasons to empty your checking account before March 31

There are two good reasons to empty your checking account before March 31

Money deposited in the current account does not receive any reward from the bank. On the other hand, it costs holder management fees. Here are two more good reasons to empty your checking account before March 31!

It is known that banking institutions in France do not retain any compensation for investments made in current accounts. This is a regulation that has been in place for years, born out of an agreement between the government and banks that in return pledged to maintain free check books.

If this convention has been generally accepted until now, today's specialists do not hesitate to talk about it “Expiration”in light of the now significant decline in the use of checks, while many banks in other eurozone countries are rewarding current account investments.

Whatever the rate, the pay is well guaranteed. This is not yet the case in France, where a current account, in addition to not generating any added value, sometimes costs expensive management fees.

Interest rates are now attractive on savings accounts

To benefit from your investment, it is recommended to keep in your checking account only what is absolutely necessary to cover ongoing expenses and transfer savings to a savings account that receives rewards. In addition, the current period is favorable with interest rates returning to their real value and the inflation rate falling.

In fact, the inflation rate, which was set at 3% until 2025, has recently exceeded the inflation rate, which has now fallen below the level of 2.9% over one year last February, according to estimates by the National Institute of Statistics and Economic Studies. Unprecedented since 2021!

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You should know that comparing the interest rate and the inflation rate reveals a positive balance of 0.1% on the interest rate, which is synonymous with the real positive return on Livret A that is no longer absorbed by inflation. Sure, the return is small, but it's undoubtedly better than nothing and much better than keeping your money in an expensive checking account.

Maximize pay by respecting the “two-week” rule.

Every day wasted equals a few pennies wasted. This is why it is recommended to quickly transfer your money to a savings account, especially since the process is done instantly and without fees. However, you will need to take into account the “two-week rule” (from 1 to 15 and from 16 to 30/31 of the month) that is taken into account in banks.

For example, if you transfer your money to a savings account on April 2, your savings will not start receiving interest until the beginning of the second half of the month. Therefore, you must transfer your money from the current account to the savings account no later than March 31 to start benefiting from interest starting from April 1.