Popular savings booklet (SMP)
Verified 01 August 2024 - Directorate for Legal and Administrative Information (Prime Minister)
You have a modest income and you want to open a savings book ? The Popular Savings Book (PEL) is made for you. It's an investment with an attractive interest rate. There is no risk to your savings and no tax payable on interest. We present you with the information you need to know.
You can open a SMP in banks authorized to market this savings product.
To open a SARA, you must be over 18 years of age.
Please note
an association cannot open a SMP.
If you are under legal protection, your representative can open the SARA for you.
In addition, you must meet certain conditions related to tax domicile and income.
What are the tax residency conditions?
You must be fiscally resident in France in order to open a SMP.
What are the income conditions?
To have the right to open a SMP, your reference tax income must not exceed certain ceilings.
These ceilings are based on where you live.
In the metropolis
To open a SARA account in 2024, your 2022 benchmark tax income (2023 Tax Notice) or 2023 benchmark tax income (2024 Tax Notice) must not exceed the following limits:
Family quotient shares number | Revenue cap |
|---|---|
1 | €22,419 |
1.25 | €25,413 |
1.5 | €28,406 |
1.75 | €31,400 |
2 | €34,393 |
2.25 | €37,387 |
2.5 | €40,380 |
2.75 | €43,374 |
3 | €46,367 |
3.25 | €49,361 |
3.5 | €52,354 |
3.75 | €55,348 |
4 | €58,341 |
4.25 | €61,335 |
4.5 | €64,328 |
4.75 | €67,322 |
5 | €70,315 |
5.25 | €73,309 |
5.5 | €76,302 |
5.75 | €79,296 |
6 | €82,289 |
Extra quarter share | €2,994 |
Additional half-share | €5,987 |
When your benchmark tax income exceeds these limits in one year, you can keep your SMP if your benchmark tax income for the following year falls below these limits.
Overseas
To open a SARA account in 2024, your 2022 benchmark tax income (2023 Tax Notice) or 2023 benchmark tax income (2024 Tax Notice) must not exceed the following limits:
Family quotient shares number | Guadeloupe, Martinique, or Reunion | Guiana | Mayotte |
|---|---|---|---|
1 | €26,531 | €27,737 | €41,570 |
1.25 | €29,699 | €31,555 | €47,289 |
1.5 | €32,867 | €35,371 | €53,008 |
1.75 | €36,035 | €39,189 | €58,727 |
2 | €38,854 | €41,358 | €61,976 |
2.25 | €42,022 | €45,176 | €67,695 |
2.5 | €44,841 | €47,345 | €70,944 |
2.75 | €48,009 | €51,163 | €76,663 |
3 | €50,828 | €53,332 | €79,912 |
3.25 | €53,996 | €57,150 | €85,631 |
3.5 | €56,815 | €59,319 | €88,880 |
3.75 | €59,983 | €63,137 | €94,599 |
4 | €62,802 | €65,306 | €97,848 |
4.25 | €65,970 | €69,124 | €103,567 |
4.5 | €68,789 | €71,293 | €106,816 |
4.75 | €71,957 | €75,111 | €112,535 |
5 | €74,776 | €77,280 | €115,784 |
5.25 | €77,944 | €81,098 | €121,503 |
5.5 | €80,763 | €83,267 | €124,752 |
5.75 | €83,931 | €87,085 | €130,471 |
6 | €86,750 | €89,254 | €133,720 |
Extra quarter share | €3,168 | €3,818 | €5,719 |
Additional half-share | €5,987 | €5,987 | €8,968 |
When your benchmark tax income exceeds these limits in one year, you can keep your SMP if your benchmark tax income for the following year falls below these limits.
No, you cannot open multiple SMPs because each taxpayer is entitled to one SMP.
However, there may be 2 SMPs in a tax shelter, one booklet for you and one for your Civil partnership or partner.
FYI
you cannot open a SARA for your children.
If you misrepresent your benchmark tax income and the bank is informed, it will close your SARA. The money on your SMP will go into a savings account or a suspense account.
When opening the SMP, you must pay a minimum amount of €30.
You can then pay the amount you want, with a minimum of €10.
You can make payments in cash, by check or by wire transfer.
FYI
if you are under legal protection (guardianship or curatorship), your representative can make the payments.
You can pay your SMP by check, cash at the counter or by bank transfer from a demand account.
As of July 1, 2023, you can make a transfer to your SMP from a demand account opened at a bank other than the bank where the SMP is located.
The SMP ceiling is set at €10,000.
Accounting for interest paid by the bank may result in overshooting of the ceiling.
However, where the amount entered in the booklet afflicted €10,000, you can't perform again payment.
Example :
Your total remittance is €9,850.
The bank recognizes interest for €180.
The balance of your SMP is €10,030 (€9,850+ €180).
You can't make any more payments.
If the bank had not recorded interest, you could have made payments for €150.
No, there are no mandatory periodic payments.
You have the right to make the payments whenever you want, respecting the minimum amount of €10.
You can freely withdraw the money on your SARA.
But the balance of the booklet must always remain positive.
Withdrawal can be made at the bank counter where you opened the SMP or by credit card, if the bank has issued one.
FYI
if you are under legal protection (guardianship or curatorship), it is your representative who can make withdrawals.
What is the annual interest rate?
Current Rate
The annual SMP interest rate is 4%.
Old rates
Period | Rate |
|---|---|
February 1, 2024 to July 31, 2024 | 5% |
August 1, 2023 to January 31, 2024 | 6% |
February 1, 2023 to July 31, 2023 | 6.1% |
August 1, 2022 to January 31, 2023 | 4.6% |
From 1er february 2022 to july 31, 2022 | 2.2% |
From 1er february 2020 to january 31, 2022 | 1% |
From 1er August 2014 to January 31, 2020 | 1.25% |
From 1er august 2013 to july 31, 2014 | 1.50% |
From 1er february 2013 to 31 july 2013 | 2.25% |
From 1er august 2011 to january 31, 2013 | 2.75% |
From 1er february 2011 to 31 july 2011 | 2.50% |
From 1er august 2010 to january 31, 2011 | 2.25% |
How is the interest calculated?
SMP interest is calculated on 1er and the 16th of each month.
Interest for the first fortnight of the month is calculated on the 16th of the month, and interest for the second fortnight is calculated on the 1ster of the following month.
The date of the value taken into account for the calculation of interest varies according to the date of the transaction (deposit or withdrawal):
Operation | Until the 15th of the current month | From the 16th of the current month |
|---|---|---|
Deposit | 16 of the month | 1er day of the following month |
Withdrawal | Last day of previous month | 15 of the month |
The sums deposited bear interest if they are invested in whole fortnight.
On December 31 of each year, the interest accrued on the year is added to the capital.
The amount of such interest may be withdrawn from 1er January of the following year.
Interest paid by the bank is exempt from income tax and social security contributions.
SMP may be subject to a administrative seizure by third party holders.
You can transfer your SMP to another bank that has the right to market the SMP.
If you make the transfer request, the bank will wait until the end of the current month to stop the interest calculation before making the transfer.
The transfer will therefore take effect the following month.
There is no time limit.
The booklet remains open as long as you meet the income requirements for opening.
If your income for the second-last year (N-2) exceeds the limits, you do not automatically lose the right to hold a SARA.
You will be able to keep your SMP if your N-2 revenues fall below the limits the following year.
But if your N-2 revenues exceed the ceilings for 2 consecutive years, your SMP will be closed.
Please note
Your account must not remain inactive or be closed.
You can ask the bank to close your SMP.
Your SMP opening contract specifies the steps to follow with your bank (form to fill in, etc.).
The bank may also decide to close your SMP in the following cases:
- You have opened several SARAs
- You no longer qualify for SMP
- Your SARA stays inactive for a long time (5 years)
- You're passing away
Who can help me?
Find who can answer your questions in your region
Definition and operation of SMP
SMP beneficiaries (Article R221-33), documents to be provided (Articles R221-34 to R221-37), closure (Article R221-38)
Online service
Service-Public.fr
Service-Public.fr
Service-Public.fr
Supervisory and Resolution Authority (ACPR)