In the shadow of the Livret A, the Livret Jeune and the LEP are two possible alternatives for those under 26 who want to put money aside without taking any risks. Here’s what you need to know to separate them.
Are you under 26 and have some money to put aside without taking any risks? You are spoiled for choice. There is of course the traditional Livret A, which you have probably had since childhood. You may also be interested in looking at two other rulebooks: the Youth Booklet and the People’s savings account.
Both have the same qualities that make the Livret A savings product preferred by the French: absence of costs, remuneration net of taxes, total security and availability of invested capital… But also certain specific advantages, which can tip the balance. Here is what you need to know to separate the two little brothers from Livret A.
Access: Youth Booklet advantage
Are you under 26? You have the right to open a Livret Jeune, without any other conditions. You can keep it until December 31 of the year of your 25th birthday. Next? Two possibilities: either you take the step of closing it yourself; or your bank takes care of it: it then asks you to designate the account to which to transfer the money. If you don’t, she transfers it to a so-called suspense account, which obviously won’t be remunerated.
Rate, ceiling, taxation… How the Livret Jeune works
With LEP, it’s a bit more complicated. To be able to open one, there is no age limit, but two other conditions to respect:
- file your own tax return. Clearly, you do not have the right if you have chosen to remain on the declaration of your parents;
- not exceed a certain income thresholdon the basis of the reference tax income (RFR): currently, 21,393 euros for the first tax portion, in metropolitan France.
LEP: are you entitled to this super rule book?
Ceiling: LEP benefit
7700euros for the LEP, 1600euros for the Livret Jeune: on this criterion, there is no photo. A reminder, however: you can only hold one Youth Booklet and one LEP, but you can perfectly combine the two.
Remuneration: LEP benefit
6.10% net of taxes and social security contributions: this will be the new remuneration of the LEP, aligned with the inflation of the second half of 2022, from February 1, 2023. Look no further: no savings product with the same characteristics can currently compete.
This does not mean that the Livret Jeune is without interest. Unlike the LEP, its rate is not uniform: each bank can freely set it, provided it meets one condition: that it be equal to or greater than that of Livret A (2% currently, 3% from February 1). Some networks in certain regions (Banque Populaire, Caisse d’Epargne, CIC, Crdit Mutuel, etc.) currently post rates above 2%. And all will have to align themselves, at least, with the 3% of the Livret A from February 1st.
Review: LEP advantage
If you meet the LEP access conditions, there is no hesitation: go to your bank branch, with your last tax notice, to open one. Unfortunately, this opening is rarely possible online, and the product is absent from the catalogs of online banks and nobanks.
If you are not yet a taxpayer, the Livret Jeune is a possible alternative to the LEP. If your bank does not offer him a boost in remuneration, his assets are however limited compared to the Livret A. Except, of course, you are lucky enough to already have a Livret A at the ceiling and additional money to invest. .