The rate of the popular savings account (LEP) will go from 2.2% to 4.6% on August 1, confirmed this Thursday the Minister of Economy, Bruno Le Maire, in the Parisian. This makes it a much more attractive investment than the Livret A, despite the rate hike from 1% to 2% in early August.
“The LEP is the most effective investment to protect against inflation. But not enough is known! 15 million of our compatriots have the right to open a LEP and less than half have it”, lamented the Minister of Economy, Finance and Industry. and Digital Sovereignty.
“After a first communication campaign last February, 400,000 new LEPs were opened. This is not enough. Therefore, we are going to launch a new campaign with the General Directorate of Public Finance, which will contact the affected French directly by email.” added Bruno Le Maire.
• What is LEP?
The popular savings account is little known and yet its creation dates back to 1982. It is a tax-free savings account, reserved for people with limited resources. As of August 1, its rate will reach 4.6%, much higher than that of Livret A, which continues to be the preferred investment of the French.
The LEP can be opened with a payment of 30 euros. The deposit limit of each popular savings account is set at 7,700 euros, and the balance must always remain positive.
• Who has the right to open an LEP?
The popular savings account is an investment with an attractive interest rate, reserved for people with tax domicile in France and who receive a low income.
To open a LEP, income must not exceed certain limits, which vary according to the number of installments of the family quotient. These ceilings refer to the income of a single person and not to that of the tax household.
- For a single person (1 share), your annual tax base must not exceed, for example, 20,297 euros.
- For a married couple or PACS without children (2 shares), the cap is set at 31,137 euros. The same goes for a divorced couple or a single mother with two children.
- For a married couple with three children (4 shares), the ceiling is set at 52,817 euros.
The LEP takes into account the income of the previous year. To open one today, you need to factor in your 2021 income.
Please note that there cannot be more than two brochures in the same tax household.
• How to open a LEP?
The General Directorate of Public Finance is preparing to contact the approximately 7.5 million people who have the right to open a LEP but do not have it, probably because they do not know that they can benefit from it.
Eligible individuals need only contact their bank and express their desire to open a popular savings account. All they will have to do then is file their income tax notice to justify their financial situation.
In addition, married people or PACS must also prove their family situation.
• How long does the LEP last?
No duration is imposed. But beware, this booklet remains open only as long as you meet the income conditions required for opening. That is why each year you must send your new tax notice to your bank to verify that your situation still authorizes you to be the holder of a LEP.
Source: BFM TV
