2023-07-20 10:00:29
Some savings products offer better protection than others against rising prices. This is particularly the case of the popular savings account (LEP), dedicated to low-income households and which today pays up to 6%. The Banque de France also encourages households to open a LEP and expects 12.5 million French people to have one by 2024.
Indeed, the Banque de France wants to encourage the French to open a popular savings account, a product that has everything to please since it offers an interest rate of 6%, which is twice what the popular Livret A. The French people who are entitled to it are more and more numerous to have opened it at the end of June. They were no less than 9.6 million to hold a LEP, an increase of 1.3 million since the end of 2021.
The LEP, this little-known banking product
In this context of inflation which is eating away at the purchasing power of the French, this product has gained popularity whereas it was little known just a few months ago. The Banque de France, satisfied with this success, believes that it is possible to do even better. She wants to reach 12.5 million holders by next year.
“This objective is equivalent to 2/3 of eligible households. With 3 million net openings by 2024, the number of LEPs will have almost doubled in two years. I believe this is an excellent thing for the protection of savers,” explained the Governor of the Banque de France, François Villeroy de Galhau.
But to reach this figure, the Popular Savings Account will be able to benefit from two boosts by the fall. The first being the interest rate, which will rise to 6%, whereas in principle it should not exceed 5.6%. It should be noted that this feature is defined according to inflation, but this exceptional measure will particularly benefit savers, unlike those who have Livrets A, which will see its rate stagnate at 3%, in order to avoid not penalize the social housing that the money placed in these booklets finances.
A ceiling revised to 10,000 euros
The second advantage that LEP holders will benefit from is the ceiling, which will reach 10,000 euros, whereas it is currently 7,600 euros. Moreover, the Bank of France will call on the banks to increase communication on this placement which is unknown to the French, while it offers a much more attractive remuneration than the Livret A.
“Half of the people eligible for this product have a booklet A, but no LEP. This is not logical given the levels of remuneration of these two booklets… This placement suffers from a lack of notoriety. We have to remedy this, with the mobilization of the banks, ”pointed out François Villeroy de Galhau. You should also know that bank advisers in connection with the tax authorities can tell their customers directly if they can claim a LEP. Ito DGFIP also sent a letter to taxpayers eligible for LEP to notify them.
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