Inflation, which slowed significantly in October, will continue to persist towards the end of the year. A development which will penalize the remuneration of the Popular Savings Account.
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– The LEP interest rate has already fallen by more than 2% since its peak in February 2023.
Where will the fall in the interest rate stop? THE P ? After peaking at 6.1% on February 1, 2023, then rising to 6% on August 1, 2023, the yield on the Popular Savings Booklet, lowered to 5% on February 1, 2024 then to 4% on August 1will decline again on February 1, 2025. And the reduction in yield for modest savers could once again be brutal. Because the rate of the Popular Savings Account is indexed to the increase in consumer prices excluding tobacco. And the latest INSEE statement on the subject shows inflation at 1.1% over one year for the month of October, after 1% in September.
As a reminder, the remuneration of the Popular Savings Account is governed by a decree of January 27, 2021. It corresponds to the average annual inflation excluding tobacco over the last six months – between July and December 2024 for its revaluation on February 1, 2025 -, either at Livret A rate increased by half a point if this percentage is higher. Over the entire second half of the year, inflation should hover around 1.5% on average. Much less, therefore, than the minimum rate of Livret Aby 2.5% on February 1, and even less than this same rate raised by half a point in accordance with the formula in force, or 3%.
Towards a new boost?
It is this floor level of 3% which could therefore prevail from February 1st. A strict conditional: in recent years, the governor of the Bank of France, François Villeroy de Galhau, has systematically, and with the approval of Bercy, deviated from the formula for calculating the LEP rate by granting it a boost to promote this investment intended for low-income households. “It is indeed very possible that the Bank of France and the future Minister of the Economy will not follow the result of the formula and choose a works at 3.5%»anticipates the director of the Circle of Savings, Philippe Crevel. If this hypothesis is confirmed at the start of next year, the LEP will yield 2% more than inflation. A real interest rate from which its holders already benefit in 2024.
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