Excellent news awaits holders of a Popular Savings Booklet (LEP). From December 31, 2024, more than 2.5 million French people will benefit from annual interest payments. Find out the details and the impact of this measure on their purchasing power.
2.5 million French people will receive a nice sum in a few days
On December 31, 2024, at midnight, holders of Popular Savings Booklets (LEP) will see their accounts credited with interest accumulated over the past year. This booklet, reserved for low-income households, offers much higher remuneration than traditional savings products.
In 2024, the LEP rate oscillated between 6% at the start of the year and 4% from August, thus allowing attractive gains despite an economic context marked by inflationary pressures. For example, a saver who deposited the authorized limit of €7,700 was able to accumulate nearly €472 in net interest, exempt from taxes.
This initiative aims to compensate for inflation, which continues to weigh on household budgets. It also reflects the government's desire to preserve the purchasing power of citizens with modest incomes in the face of increasing spending constraints.
The LEP, ideal savings for low-income households
Designed to protect the most vulnerable savers, the LEP stands out for its numerous advantages:
- An advantageous rate: Always higher by at least 0.5 points than that of Livret A.
- Accessibility: A low initial deposit and simple opening conditions.
- Financial security: Interest is guaranteed and tax-exempt.
For comparison, the Livret A currently caps at a rate of 3%, compared to 4% for the LEP, which makes it a more attractive option for maximizing returns on savings.
However, to benefit from it, income conditions must be met. In 2024, only households whose reference tax income is below a specific threshold are eligible.
Economic impact and outlook for 2025
While the real estate market is struggling to recover and the French economy is facing structural challenges, the payment of LEP interest offers a breath of fresh air to millions of households. This system indirectly helps boost consumption at the start of the year, a crucial lever for economic growth.
The outlook for 2025 presents a mixed picture. The gradual lull in inflation should lead to a fall in the LEP rate. The governor of the Banque de France plans a reduction to around 3% next February. This rate will nevertheless maintain its advantage over the Livret A, guaranteeing French savers a more attractive return.
The LEP remains an essential pillar of savings in France, particularly in times of economic turbulence. At the end of 2024, the payment of interest is a reminder of the importance of this product in supporting the purchasing power of low-income households. LEP holders can approach 2025 with confidence, while remaining vigilant in the face of future economic developments.
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