LEP 2022. The Minister of the Economy, Bruno Le Maire, must unveil the new rate of the livret A on February 1, 2022, this Friday. Mechanically, the rate of the popular savings account will also increase.
[Mis à jour le 14 janvier 2022 à 09h04] You are probably more familiar with the livret A, but have you ever heard of the popular savings account (LEP)? Since February 1, 2020, the LEP rate has been set at 1%. On February 1, 2022, the rate of the popular savings account will be increased due to inflation, the final figures of which were unveiled by INSEE on Friday.
With inflation already reaching 2.8% over one year last December, the LEP rate should get a big boost, to settle at 2.2%! A new rate which should be confirmed this Friday by the Minister of the Economy, Bruno Le Maire, guest of the TF1 1 pm newscast.
“The popular savings account is completely protected against inflation”, argued the Governor of the Banque de France to LCI recently. “(…) There are 15 million French people who can benefit from it. It is for the French with little or no tax. There are many French people who are entitled to it and who have not opened LEP. LEP’s yield, after the revision, will be more than twice that of the livret A. This makes a significant difference (…). The real product of purchasing power protection is the livret d ‘ popular savings “.
Little known to the general public – even though it was created in the 1980s – this regulated savings product is aimed at French people with limited resources. The opening of a passbook is therefore conditional on the applicant’s income, which must not exceed a ceiling, depending on the number of shares in the family quotient. Here are the limits not to be exceeded to open a LEP in 2022:
- 1 part : 20 296 €
- 1,5 part : 25 716 €
- 2 parts : 31 135 €
- 2,5 parts : 36 554 €
- 3 parts : 41 973 €
- 3,5 parts : 47 392 €
- 4 parts : 52 811€
- Per additional half-share: € 5,420.
It is possible to place up to 7,700 euros on a LEP, excluding capitalized interest. It is therefore possible to continue to capitalize the interest once the ceiling has been reached. It should also be noted that no transaction can have the effect of making the account debtor.
The LEP rate is equal to the remunerative rate of the Livret A, increased by an increase. It was 1.25%. The LEP rate remained frozen for two years. However, it was lowered to 1% in February 2020, decision resulting from the drop in the yield of the livret A. Do you want to know more about the alternatives to regulated savings accounts? Consult our dedicated file without delay:
On February 1, 2022, however, it should benefit from a serious boost, thanks to the increase in the rate of the livret A. It should reach, at a minimum, 2.2%.
LEP interest is calculated every two weeks, on the 1stis and the 16th of each month. The date of the value taken into account for the calculation of interest varies according to the date of deposit or withdrawal. The deposits bear interest on your passbook during the following period. Concretely, if you make a deposit on your LEP between 1is and on the 15th of the month, interest will be calculated on the 16th of the same month. Conversely, the calculation of interest following a withdrawal takes place over the current period. A withdrawal cancels your interest over the period, for the amount withdrawn from the passbook. The total accumulated interest is added to the principal at the end of the year.
Only people whose tax domicile is in France can request the opening of a LEP. Only one LEP can be subscribed per person, within the limit of 2 passbooks per tax household. The opening of a popular savings account is then conditional on the subscriber’s income level. To open a LEP, your reference tax income must not exceed certain limits, which depend on the composition of your household. Here are the ceilings that apply this year (tax notice 2021 on 2020 revenues):
- 1 part : 20 296 €
- 1,5 part : 25 716 €
- 2 parts : 31 135 €
- 2,5 parts : 36 554 €
- 3 parts : 41 973 €
- 3,5 parts : 47 392 €
- 4 parts : 52 811€
- Per additional half-share: € 5,420.
In order to facilitate access to this savings product, Bruno Le Maire announced a simplification of the opening conditions. “The presentation of a tax notice to your bank when opening a LEP will no longer be compulsory.“, he explained.” Same thing for the annual audits. It will be up to the bank to verify the eligibility of the saver with the tax authorities “.
The LEP tax system is modeled on that of the livret A. Also, the interest produced on the LEP is totally tax-free. They are therefore exempt fromincome tax and social levies.