Invited this Tuesday by Apolline de Malherbe on BFMTV-RMC, the governor of the Banque de France did not commit himself to a precise figure, he only evoked a “much stronger increase” than that of brochure A. But just look at the monthly Evolution of the rise in prices published by INSEE to have a fairly precise idea of the rate from which the nearly 7 million holders of a popular savings account will benefit from February 1.
Its revaluation -scheduled twice a year, on February 1 and August 1- depends on the average inflation observed in the previous six months. Barring an unlikely turnaround, the LEP rate will drop from 4.6% to 6.2%, the highest level in its history. The last record – 4.75% – dates from March 1, 1996. This was the offered rate when it was created. But it is true that at the time, the rise in consumer prices was limited to 2%.
The best way to protect your savings from inflation
The real profitability of the savings guaranteed by the LEP version 2023 will therefore continue to be lower than it was when this alternative to the Livret A account appeared, reserved for the most modest households. But in the current context, it’s still the best way to protect your savings from inflation.
Offering the same advantages as a livret A (possibility of opening in most banks, savings always available, absence of taxes and social deductions on the interest received), the LEP remains curiously unknown to the millions of French people who, having the right to open one, has not. According to the Banque de France, of the 18.6 million adults whose income does not exceed the maximum planned income limits, only 37% have money deposited in an LEP.
It is up to the bank to verify that we are entitled to it
How do you know if you are one of the possible beneficiaries? It all depends on the reference income tax. This RFR is indicated on your tax notice. If you are single and wish to open a LEP before December 31 of this year, the amount entered in the 2021 notice regarding your 2020 income must not exceed 20,297 euros. For a couple without children, the ceiling increases to 31,137 euros. And for a family with two children it reaches 41,977 euros, knowing that each parent has the right to open their own LEP.
It is also up to the bank to verify that the customer who requests to open this book is entitled to it. The same exercise will have to be carried out once a year, to verify that each of the holders has not exceeded the expected ceiling. Knowing that even if this is the case for a year, the brochure will not automatically close. This additional cost must be in force for two consecutive years to lose the benefit of the LEP and have to transfer the accumulated savings to Livret A or another account.
Source: BFM TV
