Despite two rate cuts coming in 2024, the first from February 1, the Popular Savings Account, will remain, as in 2023, the best-paid savings account on the French market. Explanations.
From 6% to 5% next February 1st then, undoubtedly, 3.5% on August 1st… This is today the probable trajectory of the rate of the Popular Savings Booklet in 2024. If it is confirmed, the LEP average yield could fall 4.46% this yearagainst 5.93% in 2023. A disappointment, undoubtedly, for the 2 million French people who opened an account in 2023, attracted by its exceptional remuneration, double that of the Livret A, and the possibility, since last October 1 , to place 10,000 euros there, compared to 7,700 euros previously.
LEP: how much interest will you lose with the rate cut in 2024?
A largely positive real return
Let them console themselves: trusting the LEP to invest its precautionary savings will still a great deal. And this for at least 2 reasons.
The first: despite this drop, the real yield of the LEP, adjusted for inflation, will remain largely positive and even better than in 2023. Clearly, despite the drop in the rate, no loss of purchasing power for the money placed in a LEP. Let’s look at the numbers. INSEE, responsible for the monthly calculation of the consumer price index, currently expects average inflation of around 2.5% in the first half of 2024, down sharply compared to 2023 (4.9% annual average) . The real yield of a 5% LEP will therefore still be +2.5%. Much, much more, for example, than in the first half of 2023, when the LEP was already reporting 6%, but average inflation was approaching 5.6%.
No rival among savings accounts
Second reason to trust LEP despite the decline: there is, in any case, no no way to find better elsewhere.
In addition to its remuneration, the LEP presents, in fact, two big advantages: the invested capital is 100% protected and the invested money is available at any time. However, no savings product with comparable characteristics can compete.
Regulation booklet side, the Livret A and the LDDS yield 3% and will not go higher: their rate has been blocked until January 2025, by government decision. Even the Youth Booklet, reserved for 12-25 year olds, doesn’t do much better. However, banks are free to set their remuneration as they wish, provided that it is at least equal to that of Livret A. In reality, however, the most generous do not currently exceed 4%, and the average return is 3. 56%, according to the Banque de France. Nothing that could overshadow LEP, at least over the next 6 months.
Side bank accounts taxed at market rate, we are also very far from the mark. However, the historic increase in the key rates of the European Central Bank (and in particular the deposit facility, currently 4%) should have encouraged French banks to go hunting for liquidity. This was not the case: according to the Banque de France, the average yield on these so-called ordinary savings accounts peaked at 0.83% last November! And again: this is a gross rate. Net of PFU, it falls 0.58%. This is not likely to change: barring a catastrophe, ECB rates will not go higher, confirmed Christine Lagarde, the French president of the monetary institution.
Ultimately, only a few online banks and specialized credit institutions really played the game of increasing rates. Without competing with the LEP, however: the best current booklets display a gross remuneration of 3.34% over one year, welcome offer included, or 2.34% net PFU. Their only asset, ultimately, is their payment limitwhich amounts to millions of euros (when it is not unlimited), compared to 10,000 euros for the LEP.
Comparison of offers on the best bank accounts