LEP: undeniable success

2023-08-08 09:00:45

LEP: an interest rate well above that of the Livret A The LEP interest rate has been set at 6% since August 1, 2023, following reaching 6.1% in February of the same year. This rate is well above the level of inflation (4.5% over one year in June 2023), which makes it an attractive option for eligible savers. The LEP rate is generally increased by half a point compared to the Livret A. It is recalculated every 6 months and depends on inflation and interbank rates. In 2023, the rate of return for the People’s Savings Account reached 6.1%, a level not seen since 1985. And this while the Livret A remains blocked at 3% per year, like the Development Account. Sustainable and Solidarity. This rate should not change before 18 months, i.e. in August 2024. The increased ceiling of the People’s Savings Account The LEP ceiling has been raised from 7,700 euros to 10,000 euros, effective from October 1, 2023. This measure allows savers to deposit more money into their People’s Savings Account. Nearly 4.5 million LEP holders have already exceeded the old ceiling. The Banque de France has clarified that the ceiling of 10,000 euros will take into account accrued interest. If a LEP has already reached the ceiling of 10,000 euros, its holder will not be able to add money, despite the announced increase. As a reminder, the LEP is reserved for low-income households, with specific income ceilings. For example, the 2021 reference tax income to open a popular savings account in 2023 is 21,393 euros for a family quotient share. The ceiling varies according to the composition of the household. Conditions and eligibility: what you need to know to open a LEP The opening of a LEP is subject to income conditions and reserved for the most modest tax households residing in France. The People’s Savings Book is not limited in time, and married couples can each have a People’s Savings Book. The LEP offers total exemption from income tax and social security contributions. The minimum initial payment is 30 euros, and it is not possible to have several LEPs. The transfer of a LEP from one institution to another is possible without loss of interest. LEP in figures Interest rate 2023 6% Ceiling €10,000 Reference tax income (1 share) €21,393 Interest for €7,700 €491.4
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