From February, the most advantageous savings account will lose its value

Savings accounts are banking products regulated and guaranteed by the State. Individuals who hold a savings account therefore invest their money with a certain security and, at the end of each year, receive interest rates set by the public authorities, which sometimes turn into a tidy sum. Some savings plans are therefore more advantageous than others.

Until now, the popular savings book (LEP), held by 10 million French people with modest incomes, was known to have one of the most attractive rates. This was set since August 1, 2023 at 6% and was not subject to income tax. Its ceiling being 10,000 euros, it could earn its holder up to 600 euros in interest at the end of the year. But from February, its rate of return will drop.

Indeed, the Minister of the Economy, Bruno Le Maire, confirmed this Monday, January 15, what had been feared for several months. The LEP rate will decrease by 1% on February 1, 2024, which brings it down to 5%. This change was predictable, because the rate is revised on average twice a year “depending on the level of inflation” observed over the last six months, indicates the Public Service website. For the rate of this investment to be maintained at 6%, inflation would have had to remain at a high level in the second half of 2023. But this is not the case. According to the latest data from the National Institute of Statistics and Economic Studies (Insee), despite a slight rebound in inflation of 0.1% in December 2023, if we look at the whole year, the Inflation fell to 4.9% on average, compared to 5.2% the previous year. “The remuneration of the popular savings account should have fallen to 4.4% on February 1. I decided, with the governor of the Bank of France, to give a helping hand by setting the remuneration at 5%”, commented Bruno Le Maire on his X account. An investment which ultimately still remains interesting for many French people.