Each year, the rate of return on the popular savings account is readjusted twice to follow changes in inflation. From February 2025, the yield of the LEP is therefore likely to decrease.
- In the coming months, the consumer price index is expected to continue to decline
- Over the whole of 2024, inflation should be around 1.8%
- The drop in inflation will not delight holders of regulated savings products
- When the consumer price index falls, the yield rates on Livret A, LEP and LDDS are revised downwards
- During the last update of its rate of return, the LEP increased to 4%
- By following the LEP calculation formula (decree of January 27, 2021), the new rate of the popular savings account could therefore be 3%
Inflation stood at 1.9% in August. This was indicated by the National Institute of Statistics and Economic Studies. In the coming months, the consumer price index is expected to continue to decline. Moreover, INSEE estimates that this could drop sharply in December. Over the whole of 2024, inflation is expected to be around 1.8%, so we are a long way from what was observed last year.
If the drop in inflation is rather good news for the purchasing power of the French, it will less delight holders of regulated savings products. Indeed, these plans follow the evolution of inflation. Which means that when the consumer price index falls, the yield rates on Livret A, LEP and LDDS are revised downwards. In the case of the popular savings account, its rate is readjusted twice a year.
During the last update of its rate of return, the LEP increased to 4%, thus penalizing the millions of people who opted for this savings plan intended for the most modest households. According to the latest data communicated by INSEE, the increase in consumer prices excluding tobacco in October was 1.1%. Which means that in the second half of the current year, inflation should settle around 1.5%.
An LEP at 3% in 2025?
By following the LEP calculation formula (decree of January 27, 2021), the new rate of the popular savings account could therefore be 3%. However, as with previous readjustments, the government could decide to cushion the decline to protect savers. “It is indeed very possible that the Bank of France and the future Minister of the Economy will not follow the result of the formula and choose a 3.5% rate,” the director of the Savings Circle told Capital. , Philippe Crevel.
With the slowdown in inflation, the rate of return on the Livret A will also decline from February 2025. As a reminder, this percentage takes into account two essential variables, namely inflation and the interbank rate €ster . Taking into account the data cited above, the rate of remuneration for this livret could be around 2.5% in 2025. News which will obviously impact the finances of the 55 million holders of a Livret A.
