GBAF Logo
Global Banking & Finance Awards® 2026 Nominations open, free to enter Nominate now →
France to raise cap on popular Livret A savings account in February - Finance news and analysis from Global Banking & Finance Review
Finance

France to raise cap on popular Livret A savings account in February

Published by Global Banking & Finance Review

Posted on November 3, 2026

2 min read

· Last updated: November 3, 2026

Add as preferred source on Google

France to Increase Livret A Savings Account Cap in February 2024

French Government Announces Changes to Livret A Account

By Dominique Vidalon

Government Initiative to Channel Funds for Climate Adaptation

PARIS, Nov 3 (Reuters) - The French government will raise the amount that can be deposited in a tax-free Livret A savings account from February to channel funds towards adapting public buildings to climate change, Prime Minister Sebastien Lecornu said on Tuesday.

Additional Funding Measures and Student Unrest

• The French government is also seeking funds to finance a package of measures which includes €1 billion of investment in university campuses, to help appease student unrest.

Livret A Cap Increase and Interest Rate Update

• "We will increase the limit on the Livret A, we are going to do that in February when we will update the (interest)rate which is bound to increase," Lecornu told parliament

Discussions on New Maximum Cap

• Talks will begin with banks, the finance ministry and the Caisse des Depots et Consignations to agree on a maximum cap, which could be a total of €25,000 to €30,000

Current Livret A Account Limits and Usage

• Savers can currently put €22,950 in Livret A accounts, which offer a tax-free interest rate of 1.7%

Role of Banks and Caisse des Depots

• Banks pass on 60% of the €400 billion in deposits to Caisse des Depots, which in turn uses the funds for social housing and construction projects. However pressure is growing for the funds to be used for other public projects.

(Reporting by Dominique Vidalon; Editing by Alexander Smith)

Key Takeaways

  • The Livret A ceiling of €22 950 will be increased in February when interest rate is revised, helping raise funds for climate adaptation and student unrest measures
  • Livret A accounts currently offer a 1.7 % tax‑free return as of August 1, 2026
  • About 60 % of deposits are centralized at Caisse des Dépôts and channelled into public investments (social housing etc.), and rising encours underscore its central role

Frequently Asked Questions

What is the new proposed cap for Livret A savings accounts in France?
The new proposed cap for Livret A savings accounts could range from €25,000 to €30,000, up from the current €22,950.
When will the cap increase on the Livret A account take effect?
The cap increase on the Livret A account is set to take effect in February 2024.
Why is France increasing the Livret A savings account cap?
France is raising the cap to channel funds towards adapting public buildings to climate change and to finance measures like university campus investments.
How are Livret A deposits currently used?
60% of Livret A deposits are passed to Caisse des Depots, which uses them primarily for social housing and construction projects.
What is the current interest rate on Livret A savings accounts?
The current tax-free interest rate on Livret A accounts is 1.7%.

Tags

Related Articles

More from Finance

Explore more articles in the Finance category