Savings: what is LEP, how much can this risk-free booklet bring in and who can benefit from it?

Savings: what is LEP, how much can this risk-free booklet bring in and who can benefit from it?

The Livret d’Epargne Populaire is not accessible to all taxpayers. However, he is paid 4.6%.

Some taxpayers have received an email from tax authorities telling them that they are eligible to open a somewhat special savings account, the Livret d’Epargne Populaire, LEP.

A missive signed by the Minister of Economy and Finance in person who praises the merits of this placement.

Presented as an anti-inflation weapon

In this letter it is noted: “If you receive this email, it means that you are eligible for the opening of a People’s Savings Account (LEP), because of the amount of the reference income of your tax household at title for the year 2021 (which appears on your tax notice for 2022).”

Some will feel privileged but this is not necessarily good news, in fact it is a booklet intended for people who have an income not exceeding a certain amount.

The People’s Savings Account is a regulated savings product reserved for the most modest. This product is thus presented as a weapon against inflation and above all in favor of purchasing power.

Who can benefit ?

Already 18.6 million French people were eligible to open a popular savings account as of December 31, 2021, according to the DGFiP, as reported Capital.

Taxpayers who have received the tax message are necessarily eligible.

It just takes Being older than 18only the individuals can benefit from it, associations are excluded from the system.

And of course you have to be domiciled in France for tax purposes as stated on the website of Public service.

Then it is calculated according to the reference tax income, listed on the tax notice. the ceiling is set at €20,297 on the one hand, so a single person.

It is capped at €31,137 for a childless couple and to 41,977 euros for a couple with two children for example.

On the other hand, when the income conditions are no longer respected, the booklet will be fencing afterwards.

A safe and profitable investment

However, this booklet has many advantages. And in particular to be guaranteed by the state.

Moreover, it is possible to withdraw free of charge money placed in this account at any time.

“Like the Livret A, the LEP is a risk-free savings account, fully guaranteed by the State, and whose remuneration is totally exempt from taxes and social security contributions. Withdrawals are free, free of charge and possible at any time.”

the rate currently stands at 4.6% since its revaluation because it is modeled on consumer prices. An annual salary well above the Livret A which amounts to 2%.

How much can he bring?

This booklet whose minimum amount is 30 € is capped to the sum of €7,700.

With today’s rate which amounts to 4.6%, if the booklet is filled, the annual remuneration is €354. That is exactly €200 more than if this sum had been placed on a Livret A (the rate being 2%).

But it could fetch more. In fact, according to the inflation expectations communicated by INSEE on Wednesday 7 September, the rate of the popular savings account could exceed 6% on February 1, 2023. It would yield in this case, 460 euros annual compensation.

The conditions

Each eligible taxpayer over 18 can only open one such booklet. Just get closer to your bank to be able to open it. Fill out a form and give their last two tax notices.

Then, interest is calculated on the 1st and 16th of each month in relation to the money deposited or withdrawn the previous fortnight. At the end of the year, the interest earned is added to the capital.

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