LEP: the interest rate on the Popular Savings Account should fall on February 1, 2025

As the return on the Popular Savings Account is indexed to inflation, it should fall considerably on February 1st. The remuneration of modest savers could fall by one point, and go from 4% to 3%.

The decline in inflation is confirmed… and the drop in the LEP interest rate also on February 1, 2025. In October 2024, the increase in consumer prices was limited to 1.2% (1.1% excluding tobacco), according to final INSEE statistics published this Friday, November 15. However, the remuneration of the Popular Savings Account is precisely equal to theannual inflation excluding tobacco average observed over the last six months. Namely that observed between July and December 2024, for the revaluation on February 1st. With a price increase of “only” 2.2% in July, 1.7% in August, 1% in September and therefore 1.1% in October, the average inflation is currently limited to 1 .5%.

But that the holders of a THE P are reassured, the return on this savings product will not collapse to 1.5%, since it cannot be lower than that of the Booklet A increased by half a point. And by strictly applying the latter’s calculation formula, its rate should not be less than 2.5% from February 1. Consequence, the remuneration of the LEP will not be less than 3% (2.5% + 0.5%). A hard blow, all the same, for savers since the remuneration of the LEP has been displayed at 4% since August 1, 2024. Above all, the return of the Popular Savings Booklet – if it goes down to 3% on February 1 next – would simply be halved compared to one year, with its interest rate still peaking at 6% until February 1, 2024.

A return well above inflation in 2025

The fall could, however, be less dizzying, Bercy and the governor of the Bank of France, François Villeroy de Galhau, having made a habit of granting a boost to the remuneration of the LEP in recent years. A interest rate higher than that resulting from the calculation formulafor example 3.5%, cannot therefore be excluded on February 1st. That is, two points more than the inflation anticipated by the Banque de France, at 1.5%, for 2025. In any case, with a rate of 3% or 3.5%, the Popular Savings Account will always offer a real yield (inflation deducted) very attractive.

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