Ten million holders: this is the symbolic and historic bar that the Popular Savings Account (LEP) crossed in August, according to the Banque de France, driven by a very attractive rate of 6%.
“Difficult to find better with the same characteristics,” summarized the deputy general director in charge of statistics at the Banque de France, Marie-Laure Barut-Etherington, at a press conference.
Ceiling raised to 10,000 euros
If the number of holders is at a record level of 10.1 million at the end of August, the total outstanding amount – 59 billion euros as of September 30, according to the latest data from the Caisse des Dépôts (CDC) – remains below the level record of 2008 (more than 62 billion euros). Women and those over 65 are over-represented among holders of popular savings accounts, observes the Banque de France, which conversely identifies “margins for progress” among young people, workers and intermediate professions.
In addition to the openings, net collection (difference between deposits and withdrawals) is very positive with 11.1 billion euros between January and September, more than for the whole of 2022, again according to the CDC.
October promises to be very favorable for the LEP since its ceiling has been raised from 7,700 euros to 10,000 euros since the start of the month. The Banque de France aims to reach 12.5 million holders by the summer of 2024, out of the 18.6 million eligible people identified by the General Directorate of Public Finances.
Minister Bruno Le Maire’s hobby horse
Launched in 1982, the LEP, reserved for low-income households, belongs to the galaxy of regulated savings accounts. It is guaranteed by the State and exempt from taxes and social security contributions. It is also completely liquid, meaning that each holder can withdraw all or part of their funds at any time.
The opening of LEP among the many eligible savers in France is a hobby horse of the Minister of the Economy Bruno Le Maire and the Governor of the Bank of France François Villeroy de Galhau. For more than a year and a half, they have increased their number of speeches to ensure its promotion, particularly during the announcements of regulated savings rates every six months.
In July, Bruno Le Maire decided for a rate of 6%, more advantageous than the 5.6% provided by the calculation formula, based on inflation. This is twice that of the Livret A and the Sustainable and Solidarity Development Booklet (LDDS), maintained at 3% since August 1 for 18 months, itself more interesting than the euro life insurance funds, in back of the pack.
Not at the head of the banking establishments
However, one obstacle to the democratization of the LEP: only people declaring up to 21,393 euros of tax income for a single person, or 32,818 euros for a couple (two shares) are eligible.
Although the conditions for opening LEPs have been simplified in recent years, banking establishments are only timidly participating in the development of LEPs. The product is not at the top of the list of agencies or websites of banking establishments.
It must be said that the banks pay the 6% interest in equal shares with the Caisse des Dépôts, a bill which could exceed 3 billion euros this year. However, they are remunerated for distribution, at 0.4% of the collection.
The outstanding amount of the LEP also remains low compared to the LDDS (145 billion euros), the Livret A (406.1 billion), life insurance (1,895 billion, according to France Assureurs) and hundreds of billions euros lying dormant in current accounts, unearned.