THE P. The rate of the popular savings account called LEP will be increased to 6.1% from February 1, 2023. That is more than double the remuneration of the Livret A! Can you benefit from it?
[Mis à jour le 13 janvier 2023 à 17h10] From 4.6% to 6.1%it is the increase in the rate of remuneration of the LEP, the popular savings account, which was announced this Friday, January 13, 2023. The expected increase, and which will come into effect as of February 1, 2023, was confirmed by the Minister of the Economy Bruno Le Maire on the set of the 13-hour newscast on France 2. This new LEP rate will make this placement the most attractive on the market by far, particularly compared to the Livret A which will increase at the same time from 2% to 3%. The increase in the LEP rate from 4.6% to 6.1% in 2023 represents a gain of 15 euros in interest for 1,000 euros placed and 115 euros for 7,700 euros placed, the maximum amount that can be placed on a LEP.
The rates for French regulated savings accounts will increase from February 1:
The rate of the booklet A and the booklet of sustainable and solidarity development will increase to 3%.
The popular savings account rate will drop to 6.1%. pic.twitter.com/65TmEq5NTs— Bruno Le Maire (@BrunoLeMaire) January 13, 2023
Created in 1996, the People’s Savings Account is a regulated and tax-exempt system specifically reserved for the most modest French people. The revaluation of the LEP interest rate, scheduled each year on February 1 and August 1, is linked to the inflation rate observed over the last 6 months.
To qualify for LEP, your taxable income must not exceed 20,297 euros for a single person. Other limits are set according to the composition of the tax household. Rather unknown, it remains relatively little used by its potential beneficiaries despite its attractive remuneration and higher than the Livret A (3% on January 1, 2023). According to the Banque de France, out of 18.6 million eligible French people, only 37% have opened one.
The rate of THE P is of 4.6% since August 1, 2022 and will climb to 6.1% to February 1, 2023. 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. No operation can have the effect of making the account debit. The minimum down payment on LEP is set at 30 euros. Also, the reference tax income must not exceed certain limits, which are fixed according to the composition of your home. Here are the limits that apply this year:
- 1 slice: €20,297
- 1.5 slices: €25,717
- 2 slices: €31,137
- 2.5 servings: €36,557
- 3 slices: €41,977
- 3.5 servings: €47,397
- 4 slices: €52,817
- 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.
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 two 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”. Since March 15, 2021a bank can directly take care of contacting the tax authorities to verify that you meet the conditions for opening and holding a LEP.
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 2% to 1er August 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 for low incomes. Its rate is more than twice as profitable as that of the Livret A, with 4.6% of remuneration since August 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 “, to analyse Philippe CrevelDirector of the Cercle de l’Epargne.
The taxation of THE P is modeled on that of A booklet. This savings product is totally tax-exempt. In other words, the THE P is not subject toincome taxto the 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. Thus, the interest received is not to be mentioned in the annual tax return.
It is possible to request at any time and free of charge the closure of a LEP according to the terms set out in the contract. single letter, registered letter with acknowledgment of receipt or form are conceivable. the THE P remains open as long as the eligibility conditions related to income tax are met. For this, it is necessary to send an annual tax notice to the bank, unless it decides or proposes to approach the tax authorities directly to check herself that detention conditions of this savings product. are well respected.