Very popular in the French, the LEP is a profitable savings product, the rate of which has been steadily increasing in recent years. However, the book’s profits are likely to decline in the coming months due to slower inflation.
If the drop in inflation promises to be good news for French households, it is less so for the beneficiaries of the popular savings account. To put it in context, it is important to note that the LEP aims to protect citizens’ savings from the effects of inflation.
Therefore, if inflation declines, savers will not need to hedge against its effects. According to INSEE’s forecast, the inflation rate will remain below 3% during the first quarter of 2024.
So, everyone is wondering what will be the new LEP rates after August 1, the date of its next revision. Indeed, to keep pace with the rate of price increase, it would have to rise from 5% currently to an average of 2.5%.
So its performance drops dangerously. However, as revealed by our colleagues Moneyvox, the LEP rate is unlikely to go below 3.80%. And for good reason, its technical rate, which will be calculated by the Banque de France before August 1, will be around 3.8%. So a rate cut will be imminent, but not as significant as expected.
LEP breaks all records
Currently, with its rate of 5%, the Popular Savings Account (LEP) is breaking all records. This is the most popular savings product in France due to its increased profitability. However, given the possibility of a rate cut in August 2024, it would be worth knowing the options available in the market. You should know that many organizations offer very attractive bank accounts that allow you to achieve significant profits.
Among them is the Distingo offer, Which is the most profitable in the market with a rate of 3.34% and a ceiling of 10,000,000 euros. Then comes the Monabank offer, which has a base rate of 2%, rising to 5% in the first three months, then 3.26% during the first year.
However, LEP holders need not worry, as despite the fall in inflation, it remains beneficial. Especially since the government may intervene a second time to keep its rate cut at 4%.
