Booklet A, LEP: Leave or withdraw? What if your savings book is on the ceiling?

Your booklet A, LEP or LDDS has exceeded its ceiling with the capitalization of end -of -year interests? Wondering what to do with this surplus? With the announced drop in rates, should it be left on site or look for more profitable investments?

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It is a little war treasure. At the end of 2023, the total funds placed on regulated savings products (booklet A, LEP, LDDS, PEL, etc.) reached 935.5 billion euros, up 7% over an year. A jackpot that is growing, but remains capped for holders: impossible to place for example more than 22,950 euros on his booklet A. However, some savers may be surprised to see their balance reach or exceed the authorized payment ceiling. Nothing abnormal, rest assured. Indeed, as the article R221-2 of the Monetary and Financial Code recalls: “The capitalization of interests can bear the balance of booklet A beyond this ceiling.” In other words, if you cannot make a payment beyond the authorized ceiling (10,000 euros for a LEP, 12,000 euros for an LDDS), the interest generated can be added beyond this limit.

And this situation may present itself to many savers. Indeed, regulated booklets have experienced a strong influx of liquidity in the past two years. With a rate of 3% net of taxation in force since August 1, 2023 – and therefore throughout 2024 -, the booklet A posted a record net collection in 2023 (28.68 billion euros), to which were still added 11.87 billion euros over the first 11 months of 2024. Thus, in 2023, the Banque de France observed, for example, that more than half of the LEP (55%) exceeded the payment ceiling. Admittedly, only 12.7% of booklet A holders were in the same situation, but their proportion had to climb the end of the past year.

The rate of your booklets will drop on February 1ᵉʳ

But if it is quite possible to exceed the ceiling using its interests, is this a good strategy? After two years of attractive remuneration on risk -free savings, the time is off: on February 1, 2025, given the reflux of inflation, the Livret A rate fell from 3% to 2.4%, and that of the LEP from 4% to 3.5%. So do you have an interest in keeping this surplus on your booklets, or in investing it in potentially more remunerative investments?

It all depends on your savings goals for 2025. Keeping this money on your booklets has two advantages. First, these savings remain available at any time, in the event of an emergency (repairs, work, etc.) or to finance short -term projects (holidays, substantial purchase, family project, etc.). But above all, the interests acquired each year produce interests in the following years themselves. A “snowball” effect that generates interest on a more substantial amount each year.

Finally, it will remain difficult at the start of the year to find an alternative to so remunerative regulated booklets without taking more risk. To benefit – as on your booklet A or LEP – from an absolute capital guarantee, you will have to turn to life insurance in euros funds. Admittedly, some contracts will display yields above the booklet A this year (up to more than 4% for the best rates of 2024), but it will then be necessary to accept to immobilize your savings in the longer term. Indeed, if your capital remains available at any time, it will take 8 years to benefit from lighter taxation, while your interests remain completely tax -term on your booklet.