LEP 2022. The increase in the LEP rate from 1% to 2.2% makes this savings product an attractive investment again, much more attractive than the livret A. Are you eligible for the popular savings account? Linternaute.com answers all your questions.
[Mis à jour le 21 janvier 2022 à 13h48] Starting the February 1, 2022, the popular savings account rate (BEAUTIFUL) will be reassessed. A net revaluation of 1% at 2,2%, i.e. more than twice the remuneration of the A booklet. “On precautionary savings with a capital guarantee, there is no longer a competitive product at LEP” confided to us Philippe Crevel, Director of the Cercle de l’Epargne.
A savings investment that the Minister of the Economy Bruno the Mayor wishes to highlight, as he said on the set of TF1 on Friday January 14: “All French people who earn less than 20,000 euros per year can benefit from the popular savings account. So I would like to take advantage of this issue to encourage them to subscribe, especially in this period of inflation. We will soon send an email to all French people who can claim it.” Indeed, on the 15 millions of eligible French people, only 7 millions subscribed a BEAUTIFUL. With the exception of a decent 2020 vintage, the BEAUTIFUL has been recording outflows for around ten years now.
You can consult the conditions of eligibility and opening of accounts, below:
Little known to the general public – and this, while it was created in the years 1980 -, this regulated savings product is aimed at French people whose resources are limited. The opening of a booklet is therefore conditional on the applicant’s income, which must not exceed a ceiling, depending on the number of family quotient shares. Here are the limits not to be exceeded to open a LEP in 2022:
- 1 part : 20 296 €
- 1,5 part : 25 716 €
- 2 parts : 31 135 €
- 2,5 parts : 36 554 €
- 3 parts : 41 973 €
- 3,5 parts : 47 392 €
- 4 parts : 52 811€
- Per additional half share: €5,420.
The rate of the LEP is equal to the remunerative rate of the Livret A, increased by an increase. It was 1.25%. The LEP rate remained frozen for two years. It was however lowered to 1% in February 2020, decision resulting from the fall in the yield of the livret A. Would you like to know more about the alternatives to regulated savings accounts? Consult our dedicated file without delay:
On February 1, 2022, it should however benefit from a serious boost, thanks to the rise in the rate for the Livret A. It should reach, at a minimum, 2.2%.
LEP interest is calculated fortnightly, on the 1is and the 16th of each month. The date of the value taken into account for the calculation of interest varies according to the date of deposit or withdrawal. Deposits bear interest on your passbook during the following period. In concrete terms, if you make a deposit on your LEP between 1is and on the 15th of the month, interest will be calculated on the 16th of the same month. Conversely, the calculation of interest following a withdrawal takes place over the current period. A withdrawal cancels your interest over the period, for the amount withdrawn from the passbook. The total accumulated interest is added to the capital at the end of the year.
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. It should also be noted that no operation can have the effect of making the account debit.
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. To open an LEP, your reference tax income must not exceed certain limits, which depend on the composition of your household. Here are the caps that apply this year (tax notice 2021 on 2020 revenue):
- 1 part : 20 296 €
- 1,5 part : 25 716 €
- 2 parts : 31 135 €
- 2,5 parts : 36 554 €
- 3 parts : 41 973 €
- 3,5 parts : 47 392 €
- 4 parts : 52 811€
- Per additional half share: €5,420.
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”. 15 mars 2021, your bank can directly contact the tax authorities to verify that you meet the conditions for opening and holding a LEP.
The taxation of the LEP is modeled on that of the livret A. Also, the interests produced on the LEP are totally tax-exempt. They are therefore exempt fromincome tax and social levies.