As of February 1, 2023, the popular savings account (LEP) will see its rate climb to 6%, thus becoming one of the most profitable risk-free investments. However, this investment is reserved for the most modest households.
Much less known than the Livret A, the popular savings account (LEP) could see its number of followers increase considerably. Intended for the most modest households, 18.6 million French people are eligible according to the tax authorities. However, only 6.9 million households have opened one. A number that could quickly increase. Indeed, to fight against inflation, the LEP rate could reach 6.1% from 1 February. In comparison, the passbook A rate should rise to 3% on the same date.
Good news announced by Bruno Le Maire, the Minister of Economy and Finance at the microphone of France 2. “We will be the only country in Europe which will offer its compatriots a guaranteed savings account at a rate higher than inflation”, announced Bruno Le Maire. The Monetary and Financial Code recalls that the LEP serves “to help people with the lowest incomes to place their savings in conditions that maintain their purchasing power”. But how to subscribe to LEP and what are the conditions of resources?
What’s next after this ad
How to place your money on a popular savings account?
To place your savings on a popular savings account (LEP), you must meet several criteria set up by the Banque de France. Indeed, this investment is reserved for French residents with the lowest incomes. Tax income is therefore calculated to be eligible and the tax notice is therefore requested when opening a LEP.
For the year 2023, the tax income of the household is therefore based on the taxation of the year 2022 and calculated according to the income of 2021. They must not exceed 21,393 euros for a tax portion, 32,818 euros for a couple without children and 38,531 euros for a couple with one child. LEP is capped at €7,700 excluding interest paid, compared to 22,950 euros for the Livret A.