The LEP rate will drop to 4% effective August 1, 2024
Bad news for holders of a Livret d'épargne populaire (LEP) savings account: Economy Minister Bruno Le Maire announced on Friday, July 12, 2024, that the LEP interest rate will drop from 5% to 4% effective August 1, 2024. The Livret A interest rate, meanwhile, remains unchanged at 3%.
The LEP, an investment option for low-income households:
The LEP is an investment product reserved for low-income households, known for its attractive rates. To be eligible, you must be over 18 years of age and meet a certain annual income limit. In 2024, this limit will depend on the reference taxable income for the year 2022 or 2023. For example, for one family quotient share, the income must not exceed 22,419 euros, and for three shares, the limit is set at 46,367 euros.
Features of the LEP:
The LEP offers several advantages:
The LEP limit is set at 10,000 euros.
Your savings are completely risk-free.
Interest earned on the LEP is exempt from income tax and social security contributions.
A decline in the LEP rate following a record-breaking 2023:
After reaching a record high of 6% in 2023, the LEP rate already saw its first decline on February 1, 2024, falling to 5%. The new reduction announced by Bruno Le Maire will therefore bring the LEP rate down to 4% effective August 1, 2024.
The Livret A interest rate remains at 3%:
Unlike the LEP, the interest rate on the Livret A remains unchanged at 3%. This decision follows the recommendations of the governor of the Banque de France. The interest rate on the Livret de développement durable et solidaire (LDDS) will also remain at 3% until February 1, 2025.
