LEP 2022. The rate served by LEP will more than double from August 1st. How to compensate for the level of inflation? What new rate? We tell you everything.
[Mis à jour le 19 juillet 2022 à 08h50] The popular savings account will increase again in 2022 to take inflation into account (5.8% in June over one year). A so-called “automatic” increase, a fate also reserved for its big brother, the Livret A. The LEP rate will more than double, going from 2.2% at 4.6% August 1, 2022. Good news for some, insufficient for others, this increase will not compensate for inflation. Neither for the month of June 2022 (5.8%), nor for the year as a whole, the consumer price index should well exceed 5% on average. The Minister of Economy Bruno the Mayor formalized this increase in LEP last Thursday, endorsing the recommendation of the Governor of the Banque de France, Francois Villeroy de Galhau a few hours earlier: “The rate of the popular savings account will increase from 2.2% to 4.6%. The LEP is the most effective investment to protect against inflation”. For once, difficult to prove the tenant of Bercy wrong, the rate of pay displayed by the LEP is actually the closest to the level of inflation, all savings books combined.
Contacted last week by Linternaute.com, the Director of the Circle of Savings Philippe Crevel also indicated a strong likelihood that the LEP rate of pay will increase significantly this year: “For LEP, it will be 4.6%. The rate of return is equal to the inflation rate for the last six months”. Something to give hope to French savers. As a reminder, the popular savings account (LEP) is a guaranteed and tax-free investment, with a rate interest which is double that of the livret A. You can benefit from it if your income does not exceed certain ceilings. 7,000 LEP are open in France for a capacity of 15,000 beneficiaries. Not necessarily promoted by banks because of its relatively high management costs, the LEP is now a good alternative to taxed savings accounts for short-term savings.
The LEP rate has been 2.2% since February 1, 2022. It has remained frozen for two years. It was however lowered to 1% in February 2020, decision resulting from the drop in the yield of the Livret A.
Starting the August 1, 2022the rate served will increase to 4.6% to take inflation into account, as the Minister of the Economy Bruno Le Maire announced on July 14 in the columns of Le Parisien.
Would you like to know more about the alternatives to regulated savings books? Consult our dedicated file without delay:
It is possible to place up to 7,700 euros on a LEP, excluding capitalized interest. It is therefore possible to continue to capitalize interest once the ceiling has been reached. Remember that no operation can have the effect of rendering the account in debt. The minimum down payment on your LEP is set at 30 euros.
Also, your reference tax income must not exceed certain limits, which are fixed according to the composition of your household. Here are the limits that apply this year:
- 1 slice: €20,296
- 1.5 slices: €25,716
- 2 slices: €31,135
- 2.5 servings: €36,554
- 3 slices: €41,973
- 3.5 servings: €47,392
- 4 slices: €52,811
- Per additional half share: €5,420
When the investor’s income exceed these limits over the course of a year, he can keep his THE P if his income for the following year goes back under the eligibility limit.
The role of A booklet may look like a precautionary savings. It is advisable to place two to three months’ salary on this savings product. Revalued up to 1% to 1er February 2022the A booklet benefits from a higher ceiling than the LEP, €22,950 for an individual. Only one booklet A per person is authorized.
However, the LEP remains more than interesting if you have a modest income. In addition, the rate served is more than twice as profitable as that of the Livret A, 2.2% remuneration since February 1, 2022. “It is a product with a capital guarantee and total liquidity which is extremely attractive. There is no equivalent in terms of remuneration on short-term savings” analysis Philippe CrevelDirector of the Cercle de l’Epargne.
Only persons whose tax residence is located in France can request the opening of a LEP. Only one LEP can be subscribed per person, within the limit of 2 booklets per tax household. Opening a popular passbook is then conditional on the level of income of the subscriber. It is also necessary to be major and of no longer be attached to the tax household of his parents.
In order to facilitate access to this savings product, Bruno Le Maire had announced a simplification of the opening conditions. “The presentation to his bank of a tax notice at the opening of a LEP will no longer be mandatory“, he explained. “Same for the annual audits. It will be up to the bank to check the eligibility of the saver with the tax authorities”. March 15, 2021your bank can directly contact the tax authorities to verify that you meet the conditions for opening and holding a LEP.
The taxation of THE P is modeled on that of A booklet. This savings product is completely tax-exempt.
In other words, the THE P is not subject toincome taxto social contributions whose generalized social contribution (CSG) and the contribution to the repayment of the social debt (CRDS), nor to the flat tax at 30 % on capital income. De facto, the interest received is not to be mentioned in the annual tax return.
You have the possibility to request at any time and free of charge the closure of your LEP according to the terms set out in your contract. single letter, registered letter with acknowledgment of receipt or form are conceivable.
the THE P remains open as long as you meet the eligibility conditions related to your income tax. To do this, you must send an annual tax notice to your bank unless it decides or suggests that you contact the tax authorities directly to check herself that you respect the detention conditions of this savings product.