The Popular Savings Account (LEP) has never done so well for its name. Last August, this regulated savings product exceeded the threshold of 10 million holders, while two years before it had less than 7 million. A historical progression that is largely due to the return on this investment, which went from 1% at the beginning of 2022 to 6% today.
But that shouldn’t last. Reevaluated every six months, the LEP rate will likely fall on February 1. In fact, the remuneration of this investment depends on the average inflation without tobacco of the last six months. This is also the reason why the LEP saw its rate increase between 2022 and 2023. This time, it should move in the opposite direction, following the slowdown in inflation, which reached 4.1% on average between July and December 2023, after 5.6% between January and June.
A boost for LEP holders?
In other words, the application of the calculation formula should lead the Banque de France to propose in mid-January a remuneration rate for the LEP of around 4.1% as of February 1.
Unless the Minister of Economy, Bruno Le Maire, decides to lend a hand to savers. This is what he did last July by announcing a profitability of 6%, instead of the 5.6% expected by the formula.
In any case, the Popular Savings Book will always continue to be more interesting than the Livret A, whose rate is locked at 3% until 2025. Totally liquid, tax-free and risk-free, the LEP is, in more general terms, the product of the most attractive savings today. Remember, however, that it is reserved for low-income households whose reference tax income does not exceed 22,419 euros for a single person. Its maximum limit is also set at 10,000 euros.
In recent months, the LEP has made unprecedented progress compared to other savings products. In November, its total amount pending payment amounted to 66.6 billion euros. Never seen.
Source: BFM TV
