• In February, the Fisc sent an email to French people eligible for the popular savings account (LEP) to praise the merits of the investment.

  • The LEP remains rather shunned by the population: only seven million people have opened one, out of a total of 15 million eligible French people.

  • The reasons for this lack of adherence are manifold.

    However, the LEP does not lack assets to convince savers.

On February 1, the world of savings launched the mission: "We must save the soldier Livret d'épargne populaire", somewhat shunned by the French men and women.

From that date, its interest rate rose from 1 to 2.2%, an increase that the tax authorities announced in an email with a clear title – “Have you thought about the Livret d'Epargne Populaire (LEP)?

– which was sent to all eligible people.

According to data from the Banque de France, at the end of 2020, there would be 15 million in France to be able to open such an account, but only 7 million of them would have taken action.

However, the email from the Tax Department reminds us, the LEP "offers attractive remuneration conditions", remains tax-exempt and is just as flexible as its more popular cousin, the livret A.

Ignorance more than disenchantment

So popular savings book, why are you so unloved?

The reasons for this sulking are not lacking, list Philippe Crevel, director of the Circle of savings.

First, the LEP is only aimed at the working and lower middle classes, since to be eligible, you must have a 2020 income of less than 20,296 euros.

In fact, "it is a population that has little means to save", highlights the specialist, which would explain that 8 million eligible people still do not have LEP.

Rather than being underestimated, the popular savings account would be mostly unknown, "especially since the less well-off populations are those with the least culture on savings", notes the director.

"Banks also don't promote LEP very much, because it's expensive for them," he says.

Like all savings accounts, the LEP suffers from the privileged place of the livret A in the hearts of the French.

A booklet held by 55 million savers, or 85% of the population.

“The A booklet is easy to use, it's known, it's practical.

Often, the French do not seek to learn about other savings and stay in what they master, ”continues Philippe Crevel.

And what does it matter if now, the interest rate of the LEP is more than double that of the livret A (2.2% against 1%).

A benefit too small to count

François Geerolf, professor of economics and specialist in savings issues, explains this relative disinterest by a lack of financial stakes.

"Switching from booklet A to LEP does not actually change much about purchasing power", reveals the professor, who is based on a simple calculation: capped at 7,700 euros, the popular savings book brings in the best cases 14 euros per month to his saver.

In comparison, these 7,700 euros would bring in 6.5 euros monthly on a booklet A. “Either 7.5 euros per month of difference… Even if it can count for the working classes, it is not a major issue” .

Another reason mentioned by the professor of economics, the rise in current prices which clearly does not invite savings.

“Even at 2.2% interest, savings are rising more slowly than inflation.

It is therefore a bad calculation to save, the time is rather to spend before prices jump even more, ”underlines the expert.

Obviously, savings remain a solution adopted by many French men and women despite its immediate non-profitability, due to fear of the future and uncertain tomorrows with the economic consequences of the coronavirus crisis.

“But that remains a secondary option, recalls the professor.

The real current struggle of the popular or lower middle classes is the increase in wages,

to offset the level of inflation.

»

Bad memory and complexity

Last reason mentioned, LEP may have bad press due to its past complexity.

In the past, you had to prove each year that you were eligible for this savings by showing your tax slip to your bank.

An administrative challenge removed by the Minister of the Economy Bruno Le Maire two years ago, recalls Philippe Crevel, wondering “But who knows?

".

Economy

Public concerned, ceiling… What does the popular savings account consist of?

Economy

Does the Livret A interest rate need a little boost?

  • Inflation

  • purchasing power

  • Bank

  • A booklet

  • Saving

  • Economy

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