If you have subscribed to a Livret A or a LEP, this bad news concerning the next rates has just been announced and it will hurt…
The drop in inflation in the country is a good thing. and bad news at the same time. Indeed, it can lead to an increase in the rates of the Livret A and the LEP…
Livret A, LEP… a multitude of choices for saving
In this period of inflation, saving becomes almost essential for protect your capital and better cope with financial difficulties in 2024. There are several investment options such as the PEL or the Livret A.
If you want to buy a property, the Housing Savings Plan (PEL) is ideal. And this, just like the Housing Savings Account (CEL), which you can unlock at any time.
These two investments thus offer a return of 2%. The Livret A is also very prized in Francebecause it appeals to many people thanks to its high ceiling of €22,990 and its interest rate of 3%.
However, there is better: the Popular Savings Booklet (LEP). A regulated savings product offering a yield of 6% in 2023.
Yet many are unaware that they are eligible for this placement. According to the Bank of France15 million people can open one, but only 9 million have already done so.
As of May 2023, 52% of eligible individuals have filed an applicationcompared to 37% at the end of 2021. The LEP is said to be particularly attractive, notably with a ceiling increased from €7,700 to €10,000.
Interesting booklets
However, it is not intended to be accessible to everyone. To subscribe to it, the reference tax income of a single person must not exceed €21,393 for year n-1 or n-2.
For a couple, this ceiling is €31,602. In some exceptional casesit is therefore possible to open a LEP, for example in the event of job loss or reduced income.
In 2023, 18.6 million French people will therefore have took advantage of the benefits of the LEP, with a rate of 6%, exempt from taxes and social security contributions. Despite its attractiveness, the LEP remains little known.
More than 8 million eligible people are unaware that they can benefit from it. But be careful, this 6% rate will not last. With inflation at 4.2%, the rate is expected to drop to 4.2% in February.
That’s a reduction of 1.8 points. Some hope that the Bank of France will intervene to limit this decline. As it did this summer by maintaining a rate at 6%.
In recent months, inflation has been a Source of concern for many French people. Fortunately, its rate is gradually decreasing.
Are the rates of Livret A and LEP savings accounts in danger?
In July, inflation stood at 2.3%, and in August it fell further to 1.8%. according to the data recently published by INSEE. This drop is good news, especially for Livret A holders.
Indeed, it allows to find a positive real yield of +1.2%, after a long period of negative yield. However, this drop in inflation also has negative effects, notably on the Livret A rate. and other investments.
As MoneyVox explained, the European Central Bank (ECB) is expected to reduce its rates directorsafter having already made a drop of a quarter of a point.
This drop therefore affects the €ster interbank rate, used for calculate the rate of the Livret A. Consequently, it is likely that the rate of the Livret A and the LEP will decrease next year.
Indeed, the LEP rate has already dropped from 5% to 4% on August 1. The Sustainable and Solidarity Development Booklet (LDDS), which has the same rate as the Livret A, could also see its performance decrease.
According to forecasts, inflation could stabilise at 1.8% in the second half of the year and the €ster could fall below 3.5%. If these estimates are confirmed, the Livret A and LDDS rates could fall around 2.60%.
While the LEP rate could reach 3.10%, representing a slight decrease. Whatever happens, despite the possible drop in rates, these investments remain useful for saving and countering the effects of inflation.
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