Savings: a record with nearly 64 billion euros on LEPs, a halt for the Livret A

2023-11-21 18:52:32

Popular savings accounts (LEP) swelled by nearly 5 billion euros in October to reach a record outstanding amount, according to data published Tuesday by the Caisse des Dépôts (CDC), thanks to the increase in its ceiling.

Deposits exceeded withdrawals by 4.77 billion euros last month on this regulated savings product reserved for low-income households. The total outstanding amount of some 10 million LEPs has now reached 63.8 billion euros, an unprecedented figure.

This historic success coincides with the raising of the ceiling on October 1, from 7,700 euros to 10,000 euros, announced in mid-July by the Minister of the Economy Bruno Le Maire. In 2022, almost half of LEPs (47%) had reached or exceeded their ceiling, according to the Banque de France.

Less attractive rate for Livret A

Savers able to do so have every reason to switch their savings in favor of the LEP: it offers a remuneration rate of 6% net, without taxes or social security contributions. The amounts deposited are also guaranteed by the State and the investment is completely liquid, meaning that each holder can withdraw all or part of their funds at any time.

Livrets A and Livrets de développement durable et solidaire (LDDS) have at the same time experienced a record drop in their outstanding amounts in October, of the same order (4.44 billion euros). These two savings accounts offer a less attractive rate (3%) than the LEP and, although they remain competitive with life insurance, they also face competition from banking products such as term accounts.

The month of October is also a less buoyant month in terms of savings, particularly for owners who pay property tax, up 9.3% in one year in the 200 largest cities in France, according to the National Union of Real Estate Owners (UNPI).

The year 2023 remains no less historic for all regulated savings products. Since January, the outstanding amount of Livret A and LDDS has increased by almost 37 billion euros and that of the LEP by almost 16 billion euros.