Eight million people in France could be deprived of a LEP (Livret d’épargne populaire) regulated savings account, which is set to increase its interest rate to 4.6% from August 1 due to inflation .
The future rate of 4.6% is more than double that of the most popular regulated savings account in France, the Livret A (2%).
Read more: The French Livret A interest rate goes up again
LEPs are exempt from taxes and fees.
Currently, nearly 15 million people could technically be eligible for a LEP in France, but only seven million have one, according to the Banque de France.
This while they are reserved for the most modest households, with an interest rate more than double that of a Livret A or a Livret de développement durable et solidaire (LDDS).
Read more: What are tax-exempt bank accounts in France?
What are the eligibility criteria for an LEP?
To be eligible, you must be:
- 18 or older
- No longer financially dependent on your parents
- Reside financially in France
- Receive an income below the ceiling set by the State
What are the income limits for opening a LEP?
For 2022, the income limits were as follows, calculated based on the income you received in 2020 (your taxable income for 2021).
Each person in a household is considered a “unit” (part), and all children are “half a unit”.
- 1 share: €20,296
- 1.5 rooms: €25,716
- 2 units: €31,135
- 2.5 rooms: €36,554
- 3 games: €41,973
- 3.5 rooms: €47,392
- 4 rooms: €52,811
- Any additional half-game: €5,420
When opening the account, you must transfer a minimum of €30. Deposits and withdrawals are free and available at any time. The only condition is that the account must remain in credit.
The account limit is set at €7,700, not including interest. This means that by including interest, the amount may be higher than that.
How to open a LEP?
You can go to the bank each year during the opening period, with proof of the tax you have paid for the year concerned.
However, since March 15, 2021, the process has been simplified.
This means that the bank can contact the tax authorities directly to verify that you meet the conditions for opening and holding an LEP. However, if the tax authorities are unable to provide information to the bank, you will need to notify them.
Where applicable, the spouse or civil union partner of an eligible person must provide valid proof of marriage or civil union to access the account.
How are LEP interest payments calculated?
LEP interest payments are calculated over 15-day periods and are added to the account on December 31 of each year.
For more on how rates are calculated, see here (in French).
Is it possible to transfer the amount from one bank to another?
Yes, you can transfer your LEP from one bank to another without cost or loss of money.
Are the amounts of a LEP guaranteed?
The sums deposited in a LEP are guaranteed by the State within the limit of €100,000 per holder and per institution. The Deposit and Resolution Guarantee Fund (FGDR) manages it.
How do I close a LEP account?
You can close a LEP account at any time by following the terms of your contract (for example by registered letter).
If, after opening your account when you were eligible for it, you no longer meet the criteria for opening an LEP for two consecutive years, you must request the closure of your account no later than March 31 of the second year.
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