This month of June 2023, the popular savings account (LEP) is showing an unbeatable rate with 6.1%! With year-on-year inflation at 5.1% in May, LEP is the ultimate inflation-fighting investment. By comparison, the livret A has been fixed at 3% since February 1, 2023. LEP interest is almost twice as high as that of the livret A.
Any type of payment is authorized on the LEP, whether made in cash, by check or by transfer. However, a minimum amount of 10 euros must be respected. The LEP ceiling is set at 7,700 euros. It is possible to freely withdraw the money deposited on the LEP as long as its balance remains positive.
The biggest advantage of LEP is its high interest. These are calculated on the 1st and 16th of each month. On December 31 of each year, the interest accumulated over the year is added to the capital and can be withdrawn from January 1 of the following year. In addition, interest is exempt from income tax and social security contributions.
This Wednesday, May 31, 2023, the Governor of the Banque de France, François Villeroy de Galhau, announced that 9.6 million French people held an LEP at the end of March, reports Le Parisien. In 2022, there were only 8.2 million in November and barely 7 million at the end of 2021. “This is very good news”, exclaimed the governor of the Banque de France. However, according to his estimates, between 18 and 19 million French people can claim it. Nearly 10 million citizens could benefit from LEP. Are you one of those eligible?
The LEP is limited to one per person and two per tax household. To open one, you must be over 18 and be domiciled in France for tax purposes. Its opening is subject to means testing: for example, this year, a single person must not earn more than 21,393 euros per year; a couple with one child 38,532 euros and a couple with two children 44,249 euros.
In order to ensure the eligibility of a person, the bank questions the tax authorities directly, which is based on the tax income for 2021 entered on the 2022 tax notice. If your resources make you eligible for a LEP for a time , what happens on the day your income increases?
LEP has no holding time limit. But, but in the event that the saver’s income exceeds the ceilings set during a year, he can only keep his LEP if his income for the following year falls below the eligibility limit. Otherwise, the LEP will be closed by its bank. Likewise, the account must not remain inactive otherwise it will be closed.
It is still possible for you to open a LEP this year. However, you will have to wait to find out your reference tax income (RFR), once your 2022 tax return has been returned to the tax authorities, next May or June.
