LEP savings account what are the rules

with LEP savings accounts the maximum limit to invest is 7,700€.

Would this be doubled for a joint account, does anybody know?.

Also would it be allowed to have an LEP account with two or three banks?. I guess not but am not sure of the rules.

Hi Geoff,

If you are married, you may have 2 LEPs and that's it. Beware, for a married couple incomes should not exceed 29537 €

See http://www.journaldunet.com/patrimoine/finances-personnelles/1141377-lep/

Christian

If you are married, you may have 2 LEPs

That's one each of course... You may have one if you are not married, AFAIK but you are also entitled to put money (interest tax free) into an LDD and Livret A.

Maximum holding each on the LDD is 12k€ and Livret A 22950€ with both paying 0.75% interest.

We’re looking at opening savings accounts in France. The exchange rate is looking more cheerful - and maybe a small hedge against it going down again might be in order - though if it reprises the ‘heights’ of1.20 then any interest gain will be lost.

Madame has finally received a fiscal revenue certificate for 2021 and seems qualified for a LEP.

Looking at the rules however my revenue fiscal for 2020 (for the month of December) seems to also qualify me!

My question is once opened if one’s income increases beyond the limit in following years does one have to close the LEP, or does it stay open?

Of interest to your specific question

How do I close a LEP account?

You can close a LEP account at any time by following the terms of your contract (for example by registered letter ).

If, after opening your account when you were eligible for it, you no longer meet the criteria for opening an LEP for two consecutive years, you must request the closure of your account no later than March 31 of the second year.

Thanks for signposting the answer Graham. Looking down the T&C’s on the service-public website I also found the following (google translated so it’s a booklet)

How long is LEP open?
There is no imposed duration.

The booklet remains open as long as you meet the income conditions required for opening.

If your income for the penultimate year (N-2) exceeds the ceilings, you do not automatically lose the right to hold an LEP.

You can keep your LEP if the following year your N-2 income falls below the ceilings.

But if your N-2 income exceeds the ceilings for 2 consecutive years, your LEP will be closed.

To note
Your account must not remain inactive under penalty of being closed.

So it looks like if I open it in 2022 it will be closed shortly after 2024 on basis in 2023 N-2 income for 2021 is more than the limit, same for 2024 (this years declaration).

It’s quite similar to a UK account Barclays is offering at the mo - 5% on 5K £ - except of course with the tax relief taken into account the LEP rate is effectively 5.8% (and Barclays effectively 4%)

A visit to the bank beckons.