SMP

Lowering the popular savings rate to 5%

Publié le 30 janvier 2024 - Directorate for Legal and Administrative Information (Prime Minister)

The Livret d'Épargne Populaire (LEP) is reserved for households with a tax residence in France whose income does not exceed a ceiling revised annually. Its rate is reviewed twice a year. From 1er February 2024, it is set at 5%. The rate of livret A is maintained at 3%.

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Image 1Crédits: Cécile Haupas - stock.adobe.com

Characteristics of the popular savings book

Designed to encourage the savings of the most modest households or individuals, the Livret d'Épargne Populaire (LEP) is a regulated savings product whose rate is fixed, as for livret A, by decree of the Ministry of the Economy, on a proposal from the Governor of the Banque de France, according to the level of inflation.

Only one booklet may be held per eligible person, two per tax household: spouses or acquaintances must present a family booklet or a certificate of Civil partnership. In order to open a SMP, a child must be an adult and not attached to his or her parents' tax home.

From 1er February, and until July 31, 2024, the SMP rate shall be increased to 5% ; it was 6 % in the previous period from 1er August 2023 to January 31, 2024.

To open a SMP, the minimum amount of payment is 30 € at the opening and 10 € afterwards.

Its ceiling is set at €10,000 since 1er October 2023. This amount is composed of the payments you made and interest already capitalized. Once the ceiling is reached, the booklet continues to bear interest, but any additional payments are prohibited. The interest is calculated by fortnight and capitalized on December 31 of each year.

It is tax exempt and its funds are available at all times.

To open a SMP, you must:

  • be resident in France;
  • have a reference tax income below a ceiling that is revised annually, depending on the number of shares in the household.

Revenue caps not to be exceeded in 2024

To open a SMP in 2024, your 2022 benchmark tax income (2023 Tax Notice) must not exceed the following limits:

Tableau - Income ceilings according to family situation - Metropolitan France

Family Quotient

Revenue cap

1 part

€22,419

1.5 part

€28,406

2 shares

€34,393

2.5 shares

€40,380

3 shares

€46,367

3.5 shares

€52,354

4 shares

€58,341

Additional half-share

€5,987

if you live overseas, another ceiling scale applies. Consult the scale on the sheet of Service-Public.fr : Popular savings booklet (SMP).

FYI  

if tax revenue exceeds the cap in one year but falls below the cap in the following year, SMP can be retained. If it is exceeded for two consecutive years, its funds must be transferred.

Please note

since 2020, it is no longer necessary to provide a tax assessment for the opening of a SMP: the bank can verify the revenue cap directly with the tax administration. If the latter is unable to provide the information requested, the tax notice must still be submitted.

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