Regulated Savings: Livret A and LEP Rates to Decrease on February 1, 2025
Paris, January 15, 2025 – The French government has announced a decrease in the interest rates for the Livret A and the Livret d’Épargne Populaire (LEP) savings accounts, effective February 1, 2025.
The new rates will be as follows:
- Livret A: 3% (down from 3.3%)
- LEP: 4.6% (down from 6.1%)
These changes are in line with the recent trend of declining interest rates across the eurozone and aim to maintain a balance between encouraging savings and controlling government spending.
Livret A
The Livret A is a regulated savings account available to all French residents. It offers a guaranteed minimum interest rate and is exempt from income tax and social contributions. The Livret A is capped at €22,950 per account.
LEP
The LEP is a regulated savings account designed for individuals with low incomes. It offers a higher interest rate than the Livret A but is subject to income limits. The LEP is capped at €7,700 per account.
Impact on Savers
The rate decreases will result in lower interest earnings for holders of Livret A and LEP accounts. For example, a saver with €10,000 in a Livret A account will earn €300 in interest over one year, compared to €330 previously.
Government Response
The government has expressed its commitment to supporting savers while also managing the country’s budget. The rate decreases are part of a broader effort to reduce government spending and bring the national debt under control.
Advice for Savers
Savers who are concerned about the rate decreases may consider exploring alternative savings options, such as term deposits or bonds. It is also important to remember that the Livret A and LEP still offer a competitive interest rate compared to other savings products.
Conclusion
The decrease in Livret A and LEP rates is a significant change for French savers. While it may result in lower interest earnings, it is important to note that the rates remain competitive and the government remains committed to supporting savers.
Épargne réglementée : baisse des taux du livret A et du LEP au 1er février 2025
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