What is a Livret d’épargne populaire (LEP) ?
It is a tax-free savings account from which you can access your savings at any time, with a smaller maximum investment but a higher interest rate than a Livret A.
The livret d’épargne populaire (LEP) is only available to low and middle income households.
What is the interest-rate?
The annual interest rate is set by the French government and is currently at 6% compound in November 2023. The interest is calculated twice per month and added to your account on the 31st of December each year.
How much can you invest into an LEP?
You can invest up to 10,000 euros. The value of the account can exceed €10,000 if the excess is due to interest.
Who can open an LEP?
You must be at least 18 years old and be a tax resident of France. Companies and charities cannot open an LEP. For those who live in mainland France, the household income limit ranges from €21,393 per year for a single person to €32,818 per year for a couple. However, the limit increases for each child that lives with you. The full income criteria can be viewed here.
The income taken into consideration is the one called your “revenu fiscal de reference” and is viewable on your French tax bill (avis d’impôt sur le revenu).
What happens if my income increases past the threshold?
If you no longer meet the criteria then you must ask your bank to close your account, at the latest on the 31st of March on the second year which follows your tax return. In France, the tax year for individuals is the calendar year.
Can you have more than one LEP?
No, the limit is one per person. Therefore, an adult couple can have two. Unlike a livret A, you cannot open one for a child.
What are the charges?
There are no fees or charges.
Can you transfer an LEP from one bank to another?
Yes, if you ask to transfer then the bank will wait until the end of the month before stopping the interest calculations and then transferring your account.
Useful government links:
- https://www.service-public.fr/particuliers/vosdroits/F2367
- https://www.economie.gouv.fr/particuliers/livret-epargne-populaire-lep
- https://www.banque-france.fr/fr/a-votre-service/particuliers/connaitre-pratiques-bancaires-assurance/epargne/livrets-epargne-populaire
- https://www.lafinancepourtous.com/pratique/placements/livrets-reglementes/le-livret-depargne-populaire-lep/
The views expressed in this article are not to be construed as personal advice. Therefore, you should contact a qualified, and ideally, regulated adviser in order to obtain up-to-date personal advice with regard to your own personal circumstances. Consequently, if you do not, then you are acting under your own authority and deemed “execution only”. Additionally, the author does not accept any liability for people acting without personalised advice, who base a decision on views expressed in this generic article. Importantly, this article is dated and is based on legislation as of the date. It should be noted that legislation changes, but articles are rarely updated. Sometimes a new article is written; so, please check for later articles. Additionally, check for changes in legislation on official government websites. Finally, this article should not be relied on in isolation.
