HomeEconomyRate at 6%, tax-free interest... The popular savings account sees its ceiling...

Rate at 6%, tax-free interest… The popular savings account sees its ceiling expanded this Sunday

The limit of the Popular Savings Book (LEP), reserved for the most modest households, will increase from 7,700 euros to 10,000 euros on Sunday, October 1.

The ceiling of the Popular Savings Book (LEP), reserved for the most modest households, will increase from 7,700 euros to 10,000 euros on Sunday, October 1, indicates a decree published on Friday in the Official Gazette.

This decision was announced in mid-July by the governor of the Bank of France, François Villeroy de Galhau, and the Minister of Economy, Bruno Le Maire, without a precise date of application.

Any additional payment is prohibited when the account balance in a Popular Savings Book is greater than or equal to this limit, the decree states.

The Popular Savings Book rate was reduced to 6% on August 1, compared to 6.1% previously. The authorities wanted to promote this savings product reserved for the most modest, since its yield should have increased to 5.6% if the calculation formula provided for by law had been applied.

Around 9 million people, although eligible, do not have it.

The Livret A rate remained at 3% for a year and a half, when it should have increased to 4.1%.

With around 55 billion euros in outstanding balances, the LEP weighs ten times less than the Livret A and the Sustainable and Solidarity Development Notebook together, whose rate also remains at 3%.

Author: Frédéric Bianchi with AFP
Source: BFM TV

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