The Popular Savings Account is undeniably one of the French people’s favorite savings products. However, nearly 8 million of them do not benefit from it even though they are eligible. Especially since there is no longer any question of presenting a tax notice to open a LEP.
By the summer of 2024, the Banque de France has set itself the objective of reaching 12.5 million holders of the Popular Savings Account. Between February 1 and August 1, 2024, the LEP rate will be 5%, a rate significantly higher than inflation. In addition, the deposit limit for the Popular Savings Account has increased by 2,300 euros since October 1. Thus, the saver has the possibility of investing 10,000 euros, without risk of capital loss. Despite all these advantages, many French people, although indeed eligible, still do not benefit from the LEP.
In addition, these potential beneficiaries respect the annual income ceiling, which is 22,419 euros for a single person living in mainland France. Clearly, an adult with a monthly income which does not exceed 1,800 euros per month, and who is not attached to their parents’ tax household, is fully eligible for the Popular Savings Account.
To confirm your eligibility, simply consult your reference tax income (RFR) which is mentioned on your tax notice. It is also possible to ask your bank directly to indicate this, because since 2021, banks can, in fact, consult the tax administration to check the beneficiary’s eligibility for the LEP.
You will not be asked for a tax notice to open a LEP, except in one case.
The future saver does not need to present a tax notice to his bank. The latter, under article R221-34 of the Monetary and Financial Code, may “query the tax administration electronically in order to find out whether the conditions set out in Article R. 221-33 of this Code are met by the account holder or by the person requesting its opening “. During her press conference on October 31, Marie-Laure Barut-Etherington, Deputy Director General for Statistics and International Studies at the Banque de France, recalled that “ If you want to know if you are eligible for LEP, this is part of the services your bank is supposed to provide you, and you do not need to bring your tax notice “. However, if the bank fails to confirm the beneficiary’s eligibility for the LEP with the tax authorities, a tax notice will then be requested, as attested by the second paragraph of article R221-34 of the Monetary and Financial Code. .