What to Expect for LEP Interest Rates in 2024: Significant Decline Anticipated

2023-11-05 15:32:52

With a ceiling increased to 10,000 euros since October 1 and a rate of 6%, since August 1, 2023, the popular savings account (LEP) remains one of the favorite savings products of the French this year. Looking ahead to the year to come, many savers are wondering regarding the rate that will be applied.

It should be remembered that these rates depend on inflation. Clearly, for the LEP rate to be maintained at 6%, inflation would have to reach 6% between July and December. However, although the trend is still upwards, the price increase is declining. In fact, inflation rose to 4%, compared to 4.9 in September. A significant decline that INSEE attributes to the lull in the prices of food, energy and manufactured products.

Thus, for the more than 10 million subscribers to the popular savings account, this downward trend announces a certain fall in the rate of return on this regulated savings account from next year. Specialists explain that the Banque de France will have to suggest to the government to lower the LEP interest rate from February 1.

Faced with this situation, questions regarding the rate that will be applied in 2024 arise. In a response to a reader who wondered whether the funds they planned to deposit at the end of the year would still benefit from an interest rate of 6%, the media specializing in financial matters MonneyVox points out that the calculation of interest is made every 15 days by banking institutions in France and that interest is paid at the same time at the end of the year.

The specialist therefore explains that if the holder of an LEP deposits a sum of money on November 30, the interest will be paid on December 1, i.e. one month before January 1. For example, if the saver deposits 10,000 euros at the end of November, this amount will generate 50 euros of interest for the month of December. A sum that will be added to the beneficiary’s account at the end of the year.

To what level will the LEP rate drop in February 2024?

In January, the rate of 6% will still be in effect, but from February, it will be revised downwards. If we do not yet know how much it will fall, we are certain that it will not fall below the 3.5% mark until January 2025. Let us remember, moreover, that the LEP ceiling has passed from 7,700 euros to 10,000 euros since October 1.

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