LEP RATE. The return on the popular savings account saw its rate be set at 6%. The ceiling has, for its part, been increased.

Savings a little less profitable than in recent months, but a fixed rate. As of August 1, LEP will no longer generate as much interest as it has offered since February, but the drop will be much less than expected. Bruno Le Maire, Minister of the Economy, has indeed announced that he will set the rate at 6% “because it is popular savings” and that 10 million people have a LEP. The government has decided to ignore the mathematical calculation of basing the LEP rate on the average inflation over the past six months.

On August 1, 2023, the LEP rate will increase to 6% as announced by the Minister of the Economy Bruno Le Maire. With the evolution of rates over the year, here is the interest you can expect to receive if, on January 1, you had savings on this…

This is interest calculated on the assumption that the amount indicated was in the account on 1 January and that it has not been withdrawn. If savings have increased over the year, so will interest. And vice versa.

It is possible to invest up to 10,000 euros in an 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 initial payment on the LEP is set at 30 euros. Also, the reference tax income must not exceed certain limits, which are set according to the composition of your household. Here are the caps that apply this year:

When the saver’s income exceeds these ceilings during a year, he can keep his LEP if his income for the following year falls below 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. The opening of a popular savings account is then conditioned on the level of income of the subscriber. It is also necessary to be of legal age and 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. “Presenting a tax notice to your bank when opening a LEP will no longer be mandatory,” he explained. “The same goes for the annual audits. It will be up to the bank to verify the eligibility of the saver with the tax authorities.” Since March 15, 2021, a bank can directly take care of contacting the tax authorities to verify that you meet the conditions for opening and holding an LEP.

The role of the booklet A can be likened to precautionary savings. It is advisable to place two to three months’ salary on this savings product. Revalued by 3% on February 1, 2023, the livret A has a higher ceiling than the LEP, 22,950 euros 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 6.1% interest since February 1, 2023. “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”, analyzes Philippe Crevel, Director of Cercle de l’Epargne.

The taxation of the LEP is modeled on that of the Livret A. This savings product is totally tax-free. In other words, the LEP is not subject to income tax, social security contributions, including the general social contribution (CSG) and the contribution to the reimbursement of 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 income tax return.

It is possible to request the closure of a LEP at any time and free of charge according to the terms and conditions provided for in the contract. Simple letter, registered letter with acknowledgment of receipt or form are possible. The LEP remains open as long as the eligibility conditions related to income taxation are met. To do this, it is necessary to send a tax notice to the bank each year, unless it decides or proposes to approach the tax authorities directly to check itself that the conditions of detention of this savings product. are well respected.