They are very popular with the French to save their savings. The Ministry of the Economy chose Monday to lower the rate of the Popular Savings Booklet (LEP) from 6% to 5%, reserved for the most modest, for the next six months, and confirmed that the rate of the Livret A would be maintained at 3%.
This double announcement was made by Bruno Le Maire to readers of the regional daily La Voix du Nord, as part of his first trip since the reshuffle.
The LEP rate has been 6% since August 1, 2023. Its new rate of 5%, proposed by the governor of the Bank of France, is the result of an upward rounding of the calculation formula, which gave 4.4%.
Sharp increase in LEP holders
The number of LEP holders, which has increased sharply in recent months, is 10.7 million. The total outstanding amount peaked at 66.6 billion euros at the end of November, according to the latest tally from the Caisse des Dépôts et Consignations (CDC). However, there is one obstacle to its democratization: only people declaring up to 22,419 euros of tax income for a single person, or 34,393 euros for a couple (two shares) are eligible.
The Livret A rate is blocked at 3%, despite a calculation formula giving a higher rate, at 3.9%. It also applies to Sustainable and Solidarity Development Booklets (LDDS). Livret A and LDDS accounts represent nearly 550 billion euros.
“With inflation which will fall below 3%, you will have a popular savings account whose remuneration will be more than two points above inflation”, underlined Bruno Le Maire. For Livret A too, “this brings remuneration above inflation”, he continued.
Expected to be below 3%, inflation in France remains well above for the moment. INSEE measured the increase in consumer prices in France at 4.9% last year as an annual average, and at 3.7% over one year in December.
Livrets A, LDDS and LEP belong to the family of regulated savings products. They are guaranteed by the State and exempt from taxes and social security contributions. They are also completely liquid, meaning that each holder can withdraw all or part of their funds at any time.