Interest Rates, Ceiling, and Terms for the Widely Used Savings Account
Your Cash Guardian: The Lowdown on LEP in 2025
By Juliette Roche & Léa Boluze Last updated on
- Copy link Link copied
Diving into the LEP (LEP décode)
A Regulated Account for the People
From humble beginnings in 1982, the LEP (Livret d'Épargne Populaire) has been a faithful ally for individuals with modest incomes, aiding them in maintaining their buying power. According to the Bank of France, a staggering 11.5 million French folks set sail on this savings journey, yet millions more could embark upon this adventure[2].
Who Gets to Sail Aboard the LEP?
The LEP is tethered to French fiscal residency. Each person can chart their course with one account, but only a duo can set sail together on two LEPs per tax household. Maritime adventures must be arranged with a bank that has signed a convention with the Deposit and Consignment Office (CDC) to offer this type of nautical savings[3]. Keep in mind, no periodic payments are mandatory on this regulated sailing vessel[3].
Pro Tip: Navigators need only ensure each deposit is €10 or more[3].
Pre-Launch Checks for Your LEP Voyage
The LEP's treasury chest is clenched tightly by individuals with fiscal incomes lower than certain thresholds mentioned in Article 1417 of the General Tax Code. These ceilings bob in the currents of change every so often[4]. As the helmsman, you must present an annual tax declaration to the port of call (bank) by March 31 each year to maintain access to the LEP. If this naval obligation goes unmet, the bank is compelled to close the vessel[3].
Sailing Alert: The PEAC (Plan d'économie et de croissance) can be an excellent alternative for minors exploring uncharted seas[4].
Tax Returns: Should you make port in N-2 or N-1, your reference fiscal income will be detailed in the tax statement[4].
Fiscal Havens
When your income eclipses these ceilings, you may continue voyages with the LEP should your income plummets beneath this threshold in the following navigation season[4].
Tropical Expeditions
Elsewhere in the French territories, the income cap per navigation season varies[5].
Notification: Our Service - Test our Savings Account Comparator Tool to Set Sail**
Selecting Your Port of Call: Bank Selection
Credit Agricole, Caisse d'Epargne, La Banque Postale, LCL, and Hello bank! are among the ports welcoming you[3]. However, the LEP's functioning remains regulated, ensuring standard sailing conditions at all ports[3].
The LEP's Navigational Course in 2025
Tide Turnings
The prevailing winds of LEP interest rates have shifted significantly, declining steadily from 6.10% since February 1, 2023, to 3.5% as of February 1, 2025[6].
Interest Calculation
As with the livret A, LEP interest is tacked up on the 1st and 16th of each month. The date staked is dependent on the time of the tide (deposit or withdrawal)[6]. Sailors must let their ships be anchored for a full two-tide cycle to amass interest[6].
Maritime Dictum: Learn how to Read a Bank Statement[8].
Boarding and Departing: Minimum Engagement
The minimum initial commitment for each LEP voyage is set at €30. Bringing forth additional funds must never dip below €10[7]. These funds can be boarded via cash, check, or electronic transfer[7]. As of July 1, 2023, electronic transfers from a current account at another bank have become possible[7].
Financial Sands and the LEP
Maximum Liquid Gold Coast
The LEP's liquid gold coast, previously anchored at €7,700, has expanded to €10,000 as of October 1, 2023[7]. Interest generated beyond this coast is permissible, but further embarking requires state consents[7].
Securing the Gold Coast
Money stowed away in an LEP is fortified by the state guarantee, as it is a regulated sailing vessel managed by the Caisse des Dépôts et Consignations to finance public policies[7]. This safety net stretches up to €100,000 per offshore explorer[9]. The Fonds de Garantie des Dépôts et de Résolution (FGDR) oversees the distribution of this compensation in the name of the state[7].
Nautical Fact: Junior Savings Account: Location, Yield, and Interest[10]
Mooring the LEP: Annual Interest in 2024
To determine the interest reaped by an LEP in 2024, one must apply the different rates for the relevant high tide periods of that year. For instance, €1,000 deposited in an LEP accrued €47.295 over a year[6]. At an average balance of €6,500, this interest amounts to €307.41 on the 1st of January[6]. Finally, for a full boat (€10,000), interest peaks at nearly €473 (€472.94, to be precise)[6].
Heaving the Anchor: LEP Interest and Withdrawals
Timing is Everything
Withdrawing money from the LEP is flexible, but certain times can make the withdrawal beneficial. For a deposit made between the 1st and 15th of the month, the value date will be the 16th; if it occurs between the 16th and the end of the month, this value date will fall on the 1st of the following month[6]. The principles are the same for departing vessels. If they leave port on the 30th, 31st, or 15th of the month, the interest generated during the past tide is surrendered. It's thus recommended to hold off until the beginning of the following tide to unburden funds[7].
LEP Treasures are Tax Exempt
The gained treasure from an LEP is not subject to regional or national tax levies[6]. Keep in mind that the capitalization of interest remains tax-exempt, and no tax declarations are needed.
Quisition: The content of the LEP can be withdrawn without a penalty, as long as the balance remains positive[6]. It can also be transferred from one port to another without losing any remuneration[6].
Closing the LEP: Navigational Bad Weather
If a mariner no longer meets the criteria to board the LEP, they must request the anchors be weighed and sail away[7]. This procedure should be initiated no later than March 31st of the second year following the release of their tax statement[7].
Maritime Mystery: How to Closer Your Bank Account[11]
LEP Inactivity: Life Upon the Doldrums
An LEP is considered inactive if no transactions have occurred for five consecutive years. After ten years of inactivity, the ship's treasures are transferred to the Caisse des dépôts et consignations (CDC), which keeps them for 20 years. Following this period, the treasures belong to the state if they have not been reclaimed[7].
Down Below: LEP and Livret A
There's no reason a sailor can't maintain both the LEP and the Livret A. However, it's essential to fulfill the entry conditions of each vessel[12]. Regrettably, two LEPs per individual are forbidden[12]. Entitled explorers might find it advantageous to set course for the LEP first, filling it up to maximum capacity, before charting unfamiliar territories with the Livret A[12].
Maritime Miscellanea: Socially Engaged Account: Definition, Ceiling, and Taxation[13]
The Debate: LEP vs. Livret A
There are several factors to consider when choosing between the LEP and the Livret A. The LEP offers a considerably higher return with an interest rate of 3.5% compared to 2.4% for the Livret A since February 2025. However, the LEP is only accessible to those whose income does not surpass certain fiscal hurdles, while the Livret A is open to everyone without restrictions[12]. The anchorage capacity is also different: €10,000 for the LEP versus €22,950 for the Livret A[12]. Fortunately, adventurers can set sail aboard both vessels under the right conditions[12]. Those eligible for the LEP might find the most profitable strategy to be filling the LEP, then placing any lingering resources in a Livret A.
Behold: Related articles[14]- LEP- Savings Accounts- Savings- Savings Account Comparator- Interest Rates- Bank Account
- In their pursuit of personal-finance management, individuals might consider setting up a Livret d'Épargne Populaire (LEP) account during their retirement years, as it offers a higher interest rate compared to the Livret A and can aid in maintaining buying power.
- To optimize their education-and-self-development, individuals could use the interest earned from their LEP to finance various courses or training programs, as the gains from this regulated account are tax exempt.
