2023-07-13 13:01:04
LEP RATE. The yield of the popular savings account has decreased but remains high. However, this product is not accessible to everyone.
Summary
Savings that are a little less profitable than in recent months. As of August 1, LEP will no longer generate as much interest as it has been offering since February. The drop in the rate of the popular savings account was indeed announced by Bruno Le Maire, Minister of the Economy. This reduction is not linked to a political decision but to a simply applied mathematical calculation: the LEP rate corresponds to the average inflation over the last six months. As this slowed down slightly during the spring and the beginning of the summer, the rate was therefore mechanically reduced.
Au August 1, 2023the LEP rate will increase to 5,6% as announced by the Minister of Economy Bruno the Mayor. With the evolution of rates over the year, here is the interest you can expect to receive if, on January 1, you had savings on this…
1 000 euros : 39,54€ interest 2,000 euros: €79.08 interest 3,000 euros: 118,63€ interest 5,000 euros: 197,71€ interest 7,700 euros: 304,47€ interest
This is interest calculated on the assumption that the amount indicated was in the account on 1 January and that it has not been withdrawn. If savings have increased over the year, so will interest. And vice versa.
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. No operation can have the effect of making the account debit. The minimum down payment on LEP is set at 30 euros. Also, the reference tax income must not exceed certain limits, which are fixed according to the composition of your household. Here are the limits that apply this year:
1 part : 21 393 €
1,5 part : 27 106 €
2 parts : 32 818 €
2,5 parts : 38 530 €
3 parts : 44 243 €
3,5 parts : 49 955 €
4 parts : 55 668 €
Per additional half share: 5 712 €
When the investor’s income exceed these limits over the course of a year, he can keep his LEP if his income for the following year goes back under the eligibility limit.
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 two 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.
In order to facilitate access to this savings product, Bruno Le Maire had announced a simplification of the opening conditions. “The presentation to his bank of a tax notice at the opening of a LEP will no longer be mandatory“, 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”. Since 15 mars 2021a bank can directly take care of contacting the tax authorities to verify that you meet the conditions for opening and holding a LEP.
The role of A booklet may look like a precautionary savings. It is advisable to place two to three months’ salary on this savings product. Revalued up to 3% au February 1, 2023the A booklet benefits from a higher ceiling than the LEP, 22 950 euros for an individual. Only one booklet A per person is authorized.
However, the LEP remains more than interesting for low incomes. Its rate is more than twice as profitable as that of the Livret A, with 6.1% remuneration since February 1, 2023. “It is a product with a capital guarantee and total liquidity which is extremely attractive. There is no equivalent in terms of remuneration on short-term savings” , analysis Philippe CrevelDirector of the Cercle de l’Epargne.
The taxation of LEP is modeled on that of A booklet. This savings product is totally tax-exempt. In other words, the LEP is not subject toincome taxto social contributions, whose generalized social contribution (CSG) and the contribution to the repayment of the social debt (CRDS), nor to the flat tax To 30% on capital income. Thus, the interest received is not to be mentioned in the annual tax return.
It is possible to request at any time and free of charge the closure of a LEP according to the terms set out in the contract. single letter, registered letter with acknowledgment of receipt or form are conceivable. THE LEP remains open as long as the eligibility conditions related to income tax are met. For this, it is necessary to send an annual tax notice to the bank, unless it decides or proposes to approach the tax authorities directly to check herself that detention conditions of this savings product. are well respected.
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