Since the announcement of the increase in the ceiling of the Popular Savings Account (LEP) from 7,700 to 10,000 euros, many of you have asked us questions about the concrete terms of this change. Here are our answers to five of your questions.
When will I be able to add money to my account?
Question from Moorfinche, asked on September 13, 2023
Good morning. I wanted to save a little more on my LEP, which exceeds the ceiling taking into account interest, from October 1st. I asked my bank if I could add more funds, they told me that, for the moment, they didn’t really know. So my question is: will I be able to put more money into my LEP from October 1st? Best regards.
Good news, Moorfinche. The information was confirmed to us last weekend by the Minister of the Economy and Finance: it is good next October 1st that the ceiling of the popular savings account will officially increase to 10,000 euros. The decree confirming this date is expected this week.
MONEYVOX INFO. LEP: here is the official effective date of the 10,000 euro ceiling
Concretely, like the 5 million LEP holders (approximately one in two) having reached or exceeded the ceiling of 7,700 euros, you should be able to add money to it from Sunday October 1st. However, on two conditions:
- that your bank has done what is necessary, in advance, to take this new ceiling into account;
- that the balance of your LEP on October 1st is less than 10,000 euros.
How much will I be able to add to my LEP?
Question from Mamounette, asked on September 15, 2023
Good morning. I have a LEP 8006.57 euros. How much could I add to reach the 10,000 euros authorized in October, knowing that there is 306.57 euros in interest? Thank you for your response.
Mamounette, this is THE question asked, like you, by the 5 million ceiling LEP holders. The answer is very simple: to find out, you just need to subtract your current balance from 10,000 euros. In your case, the answer is therefore 1993.43 euros. And not 2300 euros, as you seemed to hope. The interest that you received at the end of 2022 and which allowed your LEP to exceed the ceiling of 7,700 euros must, in fact, be considered as capital and are therefore taken into account in the payment ceiling.
This also means that LEP holders whose balance already reaches or exceeds 10,000 euros, due to interest capitalized over the years, will not be able to make new payments from October 1.
LEP 10,000 euros: I am already at the ceiling of 7,700 euros. How much can I add?
Will the portion of my balance above the limit earn interest?
Question from Lau07, asked on September 7, 2023
Hello, when calculating the interest on a LEP, is the capitalization beyond the ceiling taken into account? Or does the calculation stick to the ceiling, that is currently 7700 euros even if there are for example 9000 euros on this LEP? THANKS.
Again, Lau07, this is a question that comes up often. You can be reassured: the entire balance of the LEP, including the part exceeding the payment ceiling, is pays at the same rate net of taxes and withholdings. Thus, if your balance is currently 9000 euros thanks to interest capitalized in previous years, these 9000 euros will be fully paid, and not just the first 7700 euros.
From this point of view, the change in ceiling changes nothing. On the other hand, it constitutes an opportunity. If you can, you have every interest bring your LEP to the new ceiling of 10,000 euros as soon as possible. If you do this before the end of the year, you will be able to deposit 1000 euros of additional capital. If, on the other hand, you wait until the beginning of January, your 2023 interest – around 530 euros for a capital of 9,000 euros – will have been paid and capitalized on the account. You will therefore only be able to pay 470 euros.
More concretely, in the first case, you will start the year with 10,545 euros in your account, in the second only 10,000 euros and without the possibility of adding money.
How much will my LEP earn me in 2023?
Question from Rik, asked September 15, 2023
Good morning. Currently and for more than 12 months, I have 7700 euros on my LEP. Apparently, on October 1st, the LEP ceiling increases to 10,000 euros. If I deposit an additional 2300 euros to reach this ceiling, how much interest will I have at the end of the year? Thank you for your comeback.
Rik, your LEP will earn you more this year than ever. Let’s assume that your balance has remained at 7700 euros since January 1st and that you will add 2300 euros to it from October 1st, as you will have the right to do. In total, your LEP will earn you 6.10% on 7700 euros from January 1 to July 31 (i.e. 274 euros over 14 fortnights), then 6% on 7700 euros from August 1 to October 15 (i.e. 96.25 euros over 5 fortnights) and finally 6% on 10,000 euros from October 16 to December 31 (i.e. 125 euros over 5 fortnights).
LEP: we finally know the real 2023 rate of this super savings account
Yes: the interest on the LEP, as on all passbook accounts opened in France, is not calculated on a day-to-day basis, but on a fortnightly basis. So, even if you deposit additional money as of October 1st, it will only start bearing interest from October 16. The new ceiling will therefore only apply for the last five fortnights of the year.
Booklet A, LEP… This rule from another age which erodes your interests
In total, your LEP should therefore generate 495.25 euros of interest as of December 31bringing your capital to 10,495 euros on January 1st.
How will my LEP rate change in 2024?
Question from CloClo, July 20, 2023
Hello, the Livret A rate is blocked until January 31, 2025 at 3%. Should that of the LEP, which normally should yield a minimum of 0.50% more than the Livret A, have a rate of 3.5% at least guaranteed until January 31, 2025?
CloClo, you are absolutely right: the rate of the Popular Savings Book, set at 6% since August 1, 2023, will not be able to fall below 3.5% until January 2025. The rule for setting its rate is clear, in fact: the LEP rate cannot be lower than the Livret A rate increased by 0.50 point. And the Livret A rate is effectively blocked at 3% at least until January 31, 2025.
With a Livret A blocked at 3%, is the LEP rate guaranteed above 3.5% until 2025?
Fixed at 6% since last August 1, the LEP rate is certainly still very far from 3.5%. But it could start to get closer from February 1, 2024, due to the drop in inflation, expected to be 4.30% in the second half of 2023.
LEP: bad news for holders of a popular savings account