Safe Savings: what alternatives to booklet A?

 After an initial reduction decided on February 1, investors keen to secure investments should be looking for other more profitable investments. How to optimize its investments when the horizon is short? What alternatives are available to investors?Falling rate of booklet A: the search for alternatives
Next month the 61 million holders of passbook will see for the second time in 2013 their remuneration fall. A 2.25% on 1 August 2012, the rate was reduced to 1.75% on 1 February, falling to 1.25% on August 1.
Some investors may have benefited from the recent rise in the ceiling - 22,950 euros, to make payments on their booklet A. They might be tempted to seek more profitable investments. To each to analyze the reasons that led him to promote the booklet A: simplicity and flexibility, guaranteed rate, tax-free investment usually explain this choice.
But the alternatives are under cover to ensure that the objectives behind the investment are always filled. Then it will bring the tax parameter as "alternatives" will present the characteristic of being more or less taxed.The passbook or savings account
The first product that can replace the passbook is the "passbook" in which each bank is free to set the rate and the ceiling. Unlimited in some establishments, it may allow an investment of several million euros instead of a maximum of 22 950 euros for the booklet A.
If it has the peculiarity of its interests fully tax exempt, those bank books are taxed according to the progressive rates of income tax (IR) and subject to social contributions (15.5%). However it should be noted that if the amount of interest, coupons and similar collected during the fiscal year by the home does not exceed 2,000 euros, an option for a flat tax rate of 24% is possible when income tax return prepared by the taxpayer.
The base rate is announced and the gross net return will vary for each according to his tax situation. For example for a "standard" rate of 1.70%, the taxpayer imposed in the marginal portion of that 45% over 2000 euros cash interest will pay his amputated (without taking into account the deductible CSG) 60.5% with a net pay 0.67% 1.03% but if it does not exceed EUR 2 000 Interest and similar income. In case of non-taxation, social security contributions only will be charged and pay rises to 1.44%.
Note that often there is usually a "boosted" rate or rates "promotional" practiced by banks, institutions apply the first month of your investment.Term accounts
The principle of the term account is simple: your money is locked for a period of time (from 1 month to 5 years), and paid at a rate known in advance, depending on the duration. There are actually two categories of deposit accounts:account the classical term

 Just to know the horizon, you'll enjoy throughout the selected term of a stable salary. In the event of early withdrawal, attention penalties will be recorded.The term progressive account
The term account is managed as a succession of different bearing accounts. Offered for longer periods, the rate applied varies maturity data. It is preferred in case of uncertain duration because you can withdraw all or part of the savings for each rate change without incurring penalties.
As for the bank books, the advertised rate is gross and interests subject to the same taxation as bank books: social contributions of 15.5% and income tax on the progressive scale.Life insurance
In some cases euros of life insurance funds can be used for placement of relatively short duration. If the contract has 8 years of age, any future benefit payment made in case of withdrawal, the taxation of contracts over 8 years. Thus, up to 4600 € of interest for a single person and € 9,200 for a married couple, the interest shall be subject only social contributions of 15.5%. In addition they are taxed according to the progressive scale of IR with the possibility of a standard deduction at the rate of 7.5%.
To enjoy your life insurance policy for a short-term savings, ideally it is better to have it for 8 years or at least 4 years. In fact the tax rate decreases with the age of your contract. If your contract has more than 8 years, so it may be appropriate to use it to place a sum for a period of a year or two, for example.Money market funds
If the current low current interest rates implicitly penalizes the performance of money market funds, it is useful to mention them. They allow to pay cash, short-term, performance-based money market rate is not known in advance.
One of the main characteristics of the money market fund's return on capital on a daily basis, against a fee to fifteen with the bank book or booklet A. This concept is important in case of investment in the short term. On a passbook, interest will begin to be counted as half of the placement and when removing only the last full fortnight will be counted for the calculation of interest.
The downside-the-cyclical investment in money market mutual funds is that due to the current level of interest rates and the presence of management fees, the cost is currently extremely low, if not almost zero.
Regarding taxation, most money market fund is capitalization is the taxation of capital gains or losses that applies (taxation according to a progressive scale IR) on the resale of the shares and s' there are added the social security contributions.
It is therefore possible through a search for short-term and secure to use several of these products. The choice will depend on the amounts involved and the investment horizon can vary from a few days to several months. But the comparison should be based on net returns for any tax and not just on gross returns.