If you have an LEP, you should think about taking this action by August 1st

The LEP, or Popular Savings Account, which was created in the 1980s, is primarily intended for people with modest incomes. A few months ago, the support fee was 6% and then dropped to 5%. And that decline is likely to continue between now and August 1st. What explains this new trend? What action should be planned before the arrival of this fateful date. Answers in this article.

Development of the rate of inflation in France

Inflation is one of the most important indicators in France. After a sharp rise in prices, especially in 2024, the situation is gradually easing. In February, for example, inflation rate was still high at 3%. However, according to INSEE, it improved in March and reached approximately +2.3%. This trend is mainly caused by the drop in food and tobacco prices. Great news, especially for the purchasing power of citizens.

LEP rate threatened by falling inflation

After the LEP rate falls to 5% in February 2024, a new decline could begin. Please note that this regulated brochure is indexed to inflation. Consequently, if the LEP level decreases, the LEP level will also decrease. And if INSEE’s predictions come true, average inflation for the first half of this year should reach 2.5%.

The LEP should also drop to this level. Unfortunately, this is one scenario that could happen within a few months.

LEP holder: what to do until August 1

For LEP holders, the situation appears to be quite delicate as they could see the support reward plummet. But don’t panic! Know that there is a rule that you should not neglect, the LEP rate must not be less than the Booklet A rate increased by half a point.

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The calculation for this summer will then be based on the technical rate of the latter to verify whether it exceeds the semi-annual inflation or not. Which still remains quite a bargain for savers. As a reminder, this is no longer the current Livret A rate, which is frozen at 3%, but more precisely the one resulting from the regulatory calculation formula. But before you decide, be aware that due to interbank rates not falling in the short term, the LEP rate should be around 3.70%.

In all cases, therefore, a decrease in the LEP rate can be expected ! As a solution and to anticipate possible losses now, it is best to diversify your investment portfolio before August 1st.

In order not to get lost, it would be ideal go through a wealth management consultant. Fortuny Conseil, for example, has already been able to assist 3,000 clients in their investment projects. The mission of this type of agency is to support clients’ projects, guide them to the best investments and define investment strategies.

In a nutshell, although it is highly likely that the LEP award will fall, it will not keep pace with inflation. Investors can thus prepare for this new trend. Plus, tell yourself that the actual comeback is always interesting.

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