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Savings: a record with nearly €64 billion on LEP, a halt for the Livret A savings account

2023-11-21T16:55:28.513Z

Highlights: Livret d'épargne populaire (LEP) swelled by nearly 5 billion euros in October to reach a record amount outstanding. Deposits exceeded withdrawals of €4.77 billion last month. Total outstanding amount of approximately 10 million LEPs now stands at an unprecedented €63.8 billion. This historic success coincides with the increase in the ceiling on 1 October, from €7,700 to €10,000, announced in mid-July by Economy Minister Bruno Le Maire.


The historic success of the Livrets d'épargne populaire (LEP) coincides with the increase in the ceiling on 1 October, from €7,700 to €10,000


Livret d'épargne populaire (LEP) swelled by nearly 5 billion euros in October to reach a record amount outstanding, according to data published on Tuesday by the Caisse des Dépôts (CDC), thanks to the increase in its ceiling.

Deposits exceeded withdrawals of €4.77 billion last month from the regulated savings product reserved for low-income households. The total outstanding amount of approximately 10 million LEPs now stands at an unprecedented €63.8 billion.

This historic success coincides with the increase in the ceiling on 1 October, from €7,700 to €10,000, announced in mid-July by Economy Minister Bruno Le Maire. In 2022, nearly half of LEPs (47%) had reached or exceeded their ceiling, according to the Banque de France.

Less attractive rate for the Livret A savings account

Savers who are able to do so have every reason to arbitrate their savings in favour of the LEP: it offers a net rate of return, without taxes or social security contributions. The sums deposited are also guaranteed by the State and the investment is completely liquid, i.e. each holder can withdraw all or part of his funds at any time.

At the same time, Livret A savings accounts and Livrets de développement durable et solidaire (LDDS) saw a record drop in their outstanding amounts in October, by the same amount (€4.44 billion). These two savings accounts offer a lower interest rate (3%) than the LEP and, while they remain competitive with life insurance, are also in competition with banking products such as term deposit accounts.

The month of October is also a less promising month in terms of savings, especially for owners who pay the property tax, up 9.3% in one year in the 200 largest cities of France, according to the National Union of Real Estate Owners (UNPI).

Nevertheless, 2023 remains a historic year for all regulated savings products. Since January, the outstanding amount of the Livret A and the LDDS has risen by nearly €37 billion and that of the LEP by nearly €16 billion.

Source: leparis

All business articles on 2023-11-21

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