Paid at 6.1% since February 1, 2023, the People’s Savings Account (LEP) is finally attracting eligible low-income households who did not have one. The Governor of the Banque de France, François Villeroy de Galhau, announced this week on the occasion of the publication of the annual report of the Prudential Control and Resolution Authority (ACPR) that the number of LEPs was approaching 10 million with more than 9.6 million booklets at the end of March. At the end of 2022, this number was only 8.5 million, which shows that more than 1 million people opened a LEP in a few months. However, there is still potential because the number of eligible taxpayers was estimated last year at 18 million.
Resource ceilings
The LEP is reserved for households that do not exceed certain income ceilings established according to the composition of the household (for example €21,393 for a single person and €32,818 for a couple). According to our calculations, for a single person with no income other than that of his salaried activity or retirement, this corresponds for example to a net income of €1,980 per month, which represents nearly 1. 5 times the SMIC (€1,383 net). For a couple in the same situation, their income must not exceed €3,038 per month.
It is the reference taxable income of the year preceding that of the request (or the penultimate) which is taken into account. In other words, the reference tax income for 2021 or 2022 (it will be available this summer) for an opening request made in 2023.
| Reference tax income | Net income per month | |
| Source: Ministry of Economy and Finance and Argen&Vous for the revenue estimate | ||
| 1 share (single) | €21,393 | 1.980 € |
| 1.5 shares (single person with 1 child) | 27.106 € | 2.259 € |
| 2 shares (couple) | 32.818 € | 3.038 € |
| 2.5 shares (couple with 1 child) | 38.530 € | 3.568 € |
| 3 shares (couple with 2 children) | €44,243 | 4.097 € |
| 3.5 slices | 49.955 € | 4.625 € |
| 4 shares (couple with 3 children) | €55,668 | 5.154 € |
| Per additional share | +5.712 € | +529 € |
Up to two LEPs per tax household
Banks can now query the tax authorities directly electronically to verify that the eligibility conditions are met when the passbook is opened and remain so each year. If your taxable income exceeds the ceiling for one year but falls below the following year, the LEP can indeed be retained. If it is exceeded two years in a row, the bank will have to close it.
The LEP is reserved for adults residing in France for tax purposes and there cannot be more than two LEPs in the same tax household. At the opening, you must pay a minimum of €30 into your savings account. Its ceiling is limited to €7,700, or €15,400 for a couple.
Towards a rate of 5.7% in August
However, the rate of remuneration of the LEP is regularly revised like that of the Livret A and the LDDS. It will therefore evolve on August 1st. Unlike the Livret A, the formula for calculating the interest rate of this savings account is directly derived from the evolution of consumer prices (excluding tobacco) over the last 6 months calculated by INSEE, in the purpose of protecting people’s savings from inflation.
The easing of inflation observed in recent months, and since May in particular, will therefore have a downward impact on this rate of return. Average inflation excluding tobacco was 6% from January to April, but the provisional results for May indicate a return to 5%. Assuming stabilization at these levels in June, we would arrive at a half-yearly average of 5.7%, which would therefore correspond to the new LEP rate from August.
to remember
A LEP filled to the ceiling of €7,700 should yield around €447 in interest this year on the basis of an average rate of return of 5.8% (4.6% in January, 6.1% from February to July and 5.7% from August to December) which will largely cover inflation. For a couple, this can represent nearly €900 in earnings provided they have 15,400 savings and do not touch them for 12 months.