How to open LEP in 2024 despite high income?

Popular Savings Account: A popular investment

Thanks to its attractive rate of 5%, the Popular Savings Book (LEP) Never stops talking about it. Since its creation in 1982, this investment has been reserved for the lowest income families. According to the General Directorate of Public Finance, 18.6 million French adults are eligible today based on their reference tax income. However, many people wrongly believe that they cannot avail it because of their current income. In fact, they may be eligible without knowing it. Learn more about this opportunity in this article.

Check your income for 2023 and 2022

This year, your reference tax income must not exceed €22,419 for a single person. In other words, you may have income above the accepted threshold to benefit from this regulated account, but if you are below this threshold in 2023 or 2022, you are still able to open a popular savings account.

As Marie-Laure Barut-Etherington, Deputy Director General of Statistics and International Studies at the Banque de France recently recalled, young professionals whose incomes now exceed the eligibility limit continue to benefit from their LEP. Indeed, many situations can lead to a decrease in income: job loss, reduced activity for self-employed workers, holidays, tax deductions reduce your tax base, etc. If you are affected by one of these circumstances, it is. It is important that you check your income for 2023 and 2022.

Not just reserved for the lowest income: lesser-known eligibility

• In 2020, among LEP holders, there were households whose tax income was above the eligibility threshold.
• Even in the 9th decile bracket, bringing together the highest-income French, 8.8% of them had a LEP, even though their reference tax income was more than €71,000 – or three times the eligibility threshold!
• The 8th decile with a household tax income of more than €53,000 reaches a LEP ownership rate of 13.4%.

Therefore, opening a LEP does not necessarily depend on your current income. You may be eligible without knowing it.

Eligibility thresholds are higher than they appear

If your spouse spends a year with no or insufficient income, your family is still eligible for LEP, even if your own income is above the eligibility threshold. For example, for a couple with four dependent children (i.e. 5 tax shares), the eligibility threshold for LEP increases to €70,315, corresponding to tax incomes located between the 8th and 9th deciles.

Conclusion: Act now

In conclusion, it is advisable to check the eligibility criteria as well as your tax income of previous years before leaving to open LEP. Thus, despite apparently high income you can benefit from attractive savings investments. Ask your bank or tax advisor to start this process and reap the benefits of LEP in 2024 and beyond.