Finance
France Cuts Rate on Popular Livret a Savings Accounts
Published by Global Banking & Finance Review®
Posted on July 16, 2025
1 min readLast updated: January 22, 2026
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Published by Global Banking & Finance Review®
Posted on July 16, 2025
1 min readLast updated: January 22, 2026
Add as preferred source on GoogleFrance's finance ministry reduces the Livret A savings rate to 1.7% from 2.4%, effective August 1, affecting over 600 billion euros in savings.
PARIS (Reuters) -France's finance ministry said on Wednesday it was cutting the regulated interest rate on popular, tax-free savings accounts known as Livret A to 1.7% from 2.4 from August 1.
French savers had over 600 billion euros ($696.6 billion) in Livret A accounts and a similarly regulated LDDS accounts at the beginning of the year, according to the Caisse des Depots, a public sector finance body.
The finance ministry sets the rate on the accounts on recommendation from the central bank according to a formula based in part on inflation and short-term interest rates, aiming to give savers a slight real return over inflation.
The latest cut was widely expected in light of the decline in inflation over the last year.
($1 = 0.8613 euros)
(Reporting by Leigh Thomas, Editing by Dominique Vidalon)
The new interest rate for Livret A accounts is set to 1.7%, down from 2.4%, effective August 1.
French savers had over 600 billion euros in Livret A accounts and similar LDDS accounts at the beginning of the year.
The finance ministry sets the interest rate based on recommendations from the central bank, using a formula that considers inflation and short-term interest rates.
The latest cut was widely expected due to the decline in inflation over the last year.
Livret A accounts are popular, tax-free savings accounts designed to encourage saving among the French population.
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