Decrease in LEP to 2.7%, implies possible resurgence?
### Livret d'Épargne Populaire: A Look at France's Popular Savings Account
The Livret d'Épargne Populaire (LEP), a savings account designed for modest households, continues to play a significant role in the French financial landscape. Despite recent changes, the account's future prospects remain promising.
As of February 1, 2025, the LEP offered an annual interest rate of 3.5%. However, following announcements by the Ministry of Economy and Finance, this rate is set to decrease to 2.7% from August 1, 2025[1]. This potential reduction may deter potential users, especially when compared to the Livret A, another type of savings account in France, which will decrease from 2.4% to 1.7% during the same period[1].
The number of LEP holders has been on a downward trend since the beginning of 2025. As of April 2025, there were approximately 11.8 million accounts, marking a drop below the 12 million mark[2][3]. Despite the LEP's higher interest rate, the actual number of accounts remains significantly lower than the potential number of eligible individuals, estimated at 31 million based on income criteria alone[3].
The Bank of France has emphasised the importance of preserving the LEP, capping it at 10,000 euros[4]. The remuneration rate of the LEP is three times the inflation observed in the first quarter of 2025, although the specific rate is not provided[4].
In an effort to counter the decline in the number of LEP accounts, the Banque de France is urging banks to better promote the LEP among eligible clients. Highlighting the benefits of the LEP, such as its liquidity and tax-free status, could help offset the decline[2].
The LEP's balance in 2021 was 38.3 billion euros, indicating growth since then[5]. In comparison, out of the total savings in 2024, 432 billion were in the Livret A and 82 billion were in the LEP[6]. The growth of savings in the LEP and Livret A has continued since 2021, contributing to the total regulated savings of 956 billion euros in 2024[6].
Despite the challenges, the LEP retains significant untapped potential given the large number of eligible households. Addressing the gap between the actual number of accounts and the potential number could be a key strategy for future growth[3]. The Bank of France has not disclosed the exact reason for the remuneration cuts, but the LEP's remuneration remains above a certain level, ensuring it remains an attractive option for many French households.
Personal finance plays a crucial role in the consideration of a Livret d'Épargne Populaire (LEP), as the account's potential decrease in interest rate may impact one's financial gains. Despite its higher interest rate compared to the Livret A, the number of LEP holders is significantly lower than the potential number of eligible individuals, indicating a need for increased promotion and education about its benefits.
