LEP 2022. The popular savings account (LEP) rate doubled on Monday 1 August. With a rate close to 5%, this investment is more advantageous than the livret A. The LEP is reserved for low-income households.
[Mis à jour le 3 août 2022 à 12h20] The popular savings account rate (THE P) is passed from 2.2% at 4.6%, Monday August 1, 2022. This rate is more than double that of the livret A. The LEP is an unknown investment, more advantageous than the savings product acclaimed by the French and often little used by households who are entitled to it. With inflation estimated at 6.1% over a year in July 2022, this savings account is a guaranteed and tax-exempt investment. Moreover, it has an attractive rate, close to 5%, in a context of declining purchasing power.
To qualify for the LEP, the taxable income must not exceed €20,297 for a single person. Other limits are set according to the composition of the tax household. According to the Banque de France, out of 18.6 million eligible French people, 37% have an open LEP, or just under 7 million. In comparison, nearly 56 million French people held an A booklet at the end of 2021, or around eight out of ten. The Minister of the Economy even affirmed, in an interview granted to the Parisian, that it is “the most effective investment to protect against inflation.” Thus, the LEP is now a good alternative to taxed savings accounts for short-term savings.
The rate of THE P is of 4.6% since August 1, 2022. He remained frozen for two years. Would you like to know more about the alternatives to regulated savings accounts? 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.
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.
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 your bank of a tax notice at the opening of a LEP will no longer be compulsory“, 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 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. 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.