The Popular Savings Account (LEP), reserved for the most modest, will offer from February 1 a very high rate of 6.1% and more attractive than the Livret A, but it is still largely unknown to the public. This rate, application of a calculation formula modeled on the level of inflation, had already risen in 2022 from 1% to 2.2% and then to 4.6%, on February 1 and August 1.
The LEP belongs to the galaxy of regulated savings accounts. Its outstanding balance is much lower than that of its largest: around €45 billion, or less than a tenth of the Livret A and the Livret de développement durable et solidaire (LDDS) combined. In addition, the outstanding balance of the LEP has fallen considerably compared to 2008. It was then 65.100 million euros.
A rate twice that of Livret A
Created more than 40 years ago, this brochure has all the assets to seduce: the money deposited is guaranteed by the State, exempt from taxes and social security contributions. Withdrawals are totally free, free and possible at any time. And its rate will remain double that of Livret A (3% on February 1) and without comparison with the safest European life insurance, none of which for the moment reaches the 3% bar.
However, there is a brake on its democratization: only people who declare less than 21,393 euros for a single person, or 32,818 euros for a couple (two shares) can opt. Low-income households that often have difficulty generating savings. The ceiling reaches 52,817 euros for a couple with three children (four shares). Additionally, it is not possible to combine more than two LEPs within the same tax household.
Another feature: deposits in the LEP are capped at 7,700 euros. And 43% of them were at the ceiling or beyond, for capitalized interest, according to data stopped at the end of 2021 published by the Banque de France. It should also be noted that the booklet is not limited in time, but holders must provide their tax notice to their bank each year to show that they still meet the income criteria.
communication campaign
The Central Bank “strongly supports this instrument,” he explained in a press release on Friday, apart from the proposal for the new rate. The governor has also chosen to fully apply his calculation formula, proposing to raise the rate from 4.6% to 6.1%, a level that has not been seen for more than 35 years. Despite a record number of new LEPs in 2022, more than two million, the bulk of the 18.6 million eligible people have yet to open one. This number would still be around 10 million people. Last May, the Asociación Consumo Vivienda Ambiente Vivo (CLCV) lamented the ignorance of this means of saving, especially among young people.
Last year, an email titled “Have you thought about the Popular Savings Bank?” it had been sent to eligible individuals who provided their tax email address. For the Minister, the LEP must “become the place of protection for the French”.
Source: BFM TV
