LEP rate set to fall in August, here’s what to expect

LEP rate set to fall in August, here’s what to expect
LEP rate set to fall in August, here’s what to expect

Bad news for holders of a popular savings account (LEP). The yield of this product reserved for households with modest incomes will drop on August 1, reports Capital . The LEP rate, which currently stands at 5%, in fact follows the evolution of inflation. It corresponds to the average of annual inflation excluding tobacco over the six months preceding its revision, here from January to June 2024. It is recalculated on February 1 and August 1. However, inflation has been slowing for several months.

According to INSEE figures, it reached 2.2% over one year in April, compared to 2.3% in March, 3% in February and 3.1% in January. As a reminder, it stood at 6.3% over one year in February 2023. Good news for the French wallet but which will have repercussions on the performance of the popular savings account.

A drop to 3.5% next August?

Over the first four months of the year, the year-on-year average of inflation excluding tobacco fell to 2.4%. If the trend continues, the yield on the booklet could therefore experience a dizzying drop from 5% to less than 2.5%. But such a fall will not take place.

For what ? Because a decree of January 27, 2021 indicates that the LEP rate cannot be lower than the Livret A rate, “increased by half a point”. And as the Livret A rate is frozen at 3% until February 1, 2025, the LEP yield cannot be set at less than 3.5% next August. The government could also decide to maintain it at an even higher level, as it already did in February 2024 and August 2023.

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