The popular savings account (LEP) rate rose to 6.1% on 1 February. If it now yields twice as much as the Livret A, its payment ceiling is limited to 7,700 euros. Should he spend 10,000 euros? The question is valid. Explanations.
The People’s Savings Account (LEP) is the star investment at the start of the year. It is the only one today capable of protecting you from inflation, which is close to 6%. Indeed, the rate of this product whose mission is to protect people’s savings has increased to 6.1% since February 1, 2023. It was only 1% in January 2022, before reaching 2.2% in February, then 4.6% on August 1, 2022.
In just over a year, the LEP rate has therefore been multiplied by six and is now two times higher than the Livret A rate, fixed at 3%! Result, 2million individuals opened an LEP last year. Nearly 8.5 million French people held one at the end of 2022. And this number has certainly increased significantly since the start of the year, given the media coverage surrounding its new rate of 6.1%.
A booklet that should be better known
Because, it’s a fact, LEP is not yet well enough known. More than 18 million individuals can claim this passbook. Indeed, unlike the Livret A savings account held by more than 80% of the population, the LEP is reserved for people with modest incomes. The threshold of resources not to be exceeded to be eligible is also reviewed each year.
| Reference tax income ceiling for holding a LEP in 2023 | ||||
|---|---|---|---|---|
| Shares of family quotient | Metropolitan France | Martinique, Guadeloupe, La Runion | Guyana | Mayotte |
| First part | 21393 | 25314 | 26466 | 39665 |
| Surcharge for the first additional half share | + 5713 | + 6047 | + 7286 | + 10912 |
| Increase for the following additional half-shares | + 5712 | + 5712 | + 8557 | |
| Either for 2 tax shares (husband or PACS couple, single person with one child, single person with 2 children) | 32818 | 37073 | 39464 | 59134 |
Another notable difference for the LEP: its payment ceiling is fixed 7700 euros, against 22,950 euros against the Livret A, almost three times less. Is such a difference still justified? The question may arise because, according to the latest figures available from the Banque de France, the average outstanding amount was 5,600 euros in 2021. Which means that many beneficiaries are at the ceiling.
It would not be shocking to raise the ceiling from 7700 10000euros
In this context, it would not be shocking to raise the ceiling of 7700 10000 euros. It is a symbolic bar which, in addition, would have the merit of being easily retained by banking advisers who must promote it to their eligible customers, explains Aurlien Soustre, representative of the CGT-banques et assurances on the Advisory Committee of the financial sector. It would not be absurd to raise the LEP ceiling to 10,000 euros. The current average outstanding amount on this product is high and could justify such an increase, agrees the economist Philippe Crevel.
Questioned by MoneyVox last July during the presentation of the annual report on regulated savings, the Governor of the Banque de France explained that, personally, his priority was that the LEP could be opened by most eligible people possible, rather than raising the ceiling.
The ceilings of the savings accounts revalued at the rate of inflation
For their part, Aurlien Soustre and Philippe Crevel agree on another point concerning the ceilings of regulated savings accounts, such as the Livret A, the LDDS, the LEP or even the CEL: the payment ceilings should be revalued at the rate of inflation to further protect the precautionary savings of the French.
Except for occasional increases, such as that decided under François Hollande for the Livret A pass from 15,300 to 22,950 euros, the payment ceilings do not change, notes Aurlien Soustre.
LEP: all about this unbeatable investment which earns you twice as much as the Livret A