According to the French Code monétaire et financier, a single year of exceeding income limits does not permit a bank to close a Livret d’Épargne Populaire (LEP).
The rules governing the savings product, which offers a rate of 2.50% as established in February 2026, provide a specific safety net for savers. Banks must evaluate fiscal reference income data over multiple periods before taking administrative action against a holder.
Two-Year Rule Protects Savers From Single Income Spikes
Under article L221-15 of the French monetary and financial code, an account holder loses eligibility for a LEP only when their revenues surpass legal ceilings for two consecutive years. According to regulatory frameworks applied by banking institutions, an isolated spike in earnings triggers no mandatory account closure.
This protection stems from French law n° 2020-1525 enacted in December 2020. While two separate over-limit years separated by a year below the threshold will not breach compliance, article R221-38 obliges banks to close accounts if a holder fails to justify that they meet ongoing eligibility requirements upon request.
2026 Income Thresholds and Tax Reference Rules
Eligibility limits depend entirely on the taxpayer’s household structure, known as the tax reference income (revenu fiscal de référence). According to official guidelines for mainland France in 2026, the ceiling stops at €23,028 for a single share (1 part) and €35,326 for two shares (2 parts), with each additional half-share adding €6,149.
For annual compliance checks, article R221-33 mandates that banks examine the tax revenue from the penultimate year. In 2026, institutions review the 2024 tax notice. Overseas departments maintain higher thresholds, including €27,251 for a single share in Guadeloupe, Martinique, and Réunion, and €28,489 in French Guiana and Mayotte. Students or apprentices attached to their parents’ tax households remain ineligible regardless of earnings.
Closure Timelines and Verification Procedures
When consecutive breaches occur, the administrative shutdown follows a strict calendar. If 2024 revenues exceed the cap—noted by the bank in 2026—and 2025 revenues breach the limit again, article R221-38 requires the bank to settle and close the account no later than April 30 of that second year.
Banks are not required to automate this oversight, though article R221-34 permits them to query tax administration databases electronically. When electronic verification fails or remains unavailable, the institution contacts the client directly to request their tax notice. Account holders must respond to these inquiries to prevent administrative closures driven by missing documentation rather than actual revenue disqualification.
Related reading