Have you heard of this investment that pays three times as much as the Livret A?

Starting October 1, 2023, it will be possible to deposit up to 10,000 euros into a Livret d'épargne populaire (LEP), compared to the current limit of 7,700 euros.

As of October 1, 2023, the deposit limit for the Livret d'épargne populaire (LEP) will increase from 7,700 to 10,000 euros, excluding interest. Under the new rules, the savings account is expected to become more attractive to the approximately 19 million people who are eligible for it.

Even though, despite this increase, the maximum deposit amount for a LEP is lower than that of the Livret A (set at 22,950 euros) and the LDDS (set at 12,000 euros), raising the LEP deposit limit helps make the investment more attractive. According to François Villeroy de Galhau, Governor of the Banque de France, “the goal of this measure is to reach at least 12.5 million LEP accounts within a year, representing more than two-thirds of France’s 18.6 million citizens.”

A return close to the inflation rate

With a record interest rate of 6% after taxes and all social security contributions (compared to 3% for the Livret A), the LEP is currently the only regulated savings account that can offset soaring inflation (which is expected to reach 5% in 2023, according to INSEE).

Like the Livret A, the LDDS, and the Livret Jeune, the LEP is exempt from income tax and social security contributions. However, not all taxpayers are eligible for these savings accounts.

Only taxpayers residing in France whose reference taxable income (RFR) for the year before last or the previous year does not exceed a certain threshold are eligible to open a LEP account.

For accounts opened in 2023, the 2021 or 2022 RFR limit that must not be exceeded is set at €21,393 for a single person, €32,818 for a married or civil-partnership couple, plus €5,712 for each additional half-share of the family quotient. A person may hold only one such account. To encourage LEP-eligible savers to open one, the government has introduced a number of attractive measures.