18.6 million French people are eligible for the People’s Savings Booklet, says the Banque de France in its latest report from the Regulated Savings Observatory. However, only 9.7 million French people have an LEP. This is 3 million more than at the end of 2021, but the Banque de France is aiming for 12.5 million LEPs by 2024.
Have you ever asked your banker if you were ever eligible for the People’s Savings Account (LEP)? If you pay little or no income taxit is in your best interest to do so, because your banker is supposed to answer you easily, by automatically checking your eligibility with the tax authorities.
LEP: all about this investment that beats inflation and earns twice as much as the Livret A
There are a certain number of fellow citizens who have a Livret A and would be entitled to the LEP. It is a priority target, notes with bitterness the Governor of the Banque de France, Franois Villeroy de Galhau. Like the young [jeunes adultes, puisqu’il faut tre contribuable, NDLR]which are too little aware of LEP.
The LEP rate will drop to 6% on August 1
And yet, LEP has progressed. And quickly. At the end of 2021, France had 6.9 million holders of this booklet, which then yielded 1%. Then 8.3% at the end of 2022 when the LEP was remunerated at 4.6%. This booklet, which currently earns 6.1% – since February 2023 – and 6% from August 1, continues to make mules: 9.7 million holders according to the Banque de France, for 55.8 billion euros in outstandings.
We will be very attentive to the increase in the detention of LEP, insisted Franois Villeroy de Galhau on Tuesday July 18 during a press conference. For what? Because he recognizes half-word that the decision to maintain 3% the Livret A can be misunderstood by the French. But this decision is accompanied by another: the LEP should have fallen to 5.6% but it is maintained at 6% for the next 6 months.
Livret A, LEP, LDDS… Here are the official rates as of August 1, 2023
An investment still too little known
This decision by Bercy, following the recommendation of the Banque de France, must be supported by the banks, insists Franois Villeroy de Galhau: they should promote the opening of LEP, in the obvious interest of their customers. Because the Bank of France still notes a lack of knowledge of this completely tax-free investment and soon allowing savings of up to 10,000 euros.
At least 12.5 million LEPs within a year
The Banque de France does not hesitate to display high ambitions for the LEP, its governor presenting this product as the true investment of popular savings, since intended for low-income households: With 2.1 million new savings accounts opened in 2022, the LEP records record levels of openness, supports the Banque de France in a press release. The rise in the rate of remuneration, relayed by various promotional efforts, explains this success. Today, more than 50% of eligible people have opened an LEP. This is a good progression but which needs to be further amplified since 18.6 million French people are eligible for it.
18.6 million eligible French people. For 9.7 million LEP. That’s another 9 million, or more exactly 8.9 million, of taxpayers convinced to open a LEP. The objective must be to reach at least 12.5 million LEP within a year.