Will the Savings Book for the Popular Class carry an interest rate of less than 1% as of August 1st?
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The Popular Savings Book's Yield Takes a Dip in August
With the inflation rate on a steady downturn, it's time to say goodbye to those tasty 3.5% returns on the Popular Savings Book (LEP) come August 1st. But just how low will it go?
© Dragon Claws/Adobe Stock By Thibaut Lamy, Head of service (Employment, retirement, taxes, investments) at oursite.fr Published on
As the monthly inflation rate reported by INSEE for April clocked in at a modest 0.8%, the LEP's next review could see a significant decrease in its yield. However, the specifics are still up in the air.
Looking at the six-month inflation rate excluding tobacco, it's expected to average around 0.85% over the first half of the year. But does that mean the interest rate of the LEP will plummet from 3.5% to a paltry 0.9%? Not so fast, partner!
The LEP's Interest Rate Shielded by the Livret A's
Don't worry, LEP holders! With 12.5 million of you in the game, a massive 3.5% drop isn't in the cards. First off, thanks to the decree of January 27, 2021, the LEP's interest rate can't dip below that of the Livret A by a full half-point. And good news, friend, because as of August 1st, the Livret A's interest rate isn't expected to dip below 1.7%! Thus, the LEP's remuneration can't possibly fall below the 2.2% threshold (1.7% + 0.5%).
Plus, the Governor of the Bank of France, François Villeroy de Galhau, and the Minister of the Economy and Finance, Eric Lombard, might just flex their monetary muscles once again. Remember the recent boost in the LEP's yield during its last review in February 2025? The same may happen this summer, with protecting the savings of the low-income households being the key motivation.
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Wrapping it Up
The future interest rate of the LEP will be affected by several factors, including inflation rates, monetary policy decisions, and market dynamics. However, specific details about the LEP's August review are still shrouded in mystery. Keep an eye on general economic trends and announcements from financial institutions for the latest on the LEP's yield.
- In the realm of wealth management, the interest rate of the Popular Savings Book (LEP) might be influenced by changes in inflation rates, monetary policy decisions, and market dynamics.
- For individuals focusing on personal finance, it could be advantageous to compare various savings books with a tool like our savings book comparator, as it helps to keep savings secure while monitoring shifts in the savings account market.
