Livret A 2026: 1.5% Rate, EUR 22,950 Limit

1. What is the Livret A?

The Livret A is a state-regulated savings account in France, created in 1818 to help finance post-war reconstruction. Two centuries later, it remains the country's most popular savings product, with more than 55 million accounts open and over EUR 400 billion in deposits according to Banque de France data (2025).

The mechanics are simple: you deposit money, you earn 1.5% net interest per year, you can withdraw anytime, and you pay no income tax or social contributions on the interest. Funds collected are centralized at the Caisse des Depots and used primarily to finance social housing in France.

Capital guaranteed by the state through FGDR and Caisse des Depots
Fully liquid — deposit or withdraw at any time, no penalty, no notice
Tax exempt — no income tax, no social contributions
Regulated rate — set by the Banque de France, revised every six months

Background fact: until 2009, only three banks (La Banque Postale, Caisses d'Epargne, Credit Mutuel) could distribute the Livret A. The 2008 Modernization of the Economy Act opened distribution to all banks, including BNP Paribas, Credit Agricole, Boursorama, and Fortuneo. Terms remained identical across banks — that did not change.

2. Current Rate and Rate History

Current rate: 1.5% since February 1, 2026

The Livret A rate is set at 1.5% net since February 1, 2026, under a ministerial order based on the Banque de France proposal (Service-Public.gouv.fr fiche F2365). This rate applies through July 31, 2026, with the next review on August 1, 2026.

This is the third consecutive cut in 18 months: 3% through January 2025, 2.4% from February 2025, 1.7% from August 2025, and 1.5% since February 2026. The trend mirrors the sharp decline in French inflation, which fell to 0.8% in December 2025 according to INSEE.

How the rate is set

The official formula, set by the Comite de la Reglementation Bancaire et Financiere, balances two inputs:

Six-month average inflation excluding tobacco
Short-term interbank rates, especially the €STR (the ECB's overnight rate)

The Banque de France proposes a rate twice a year, in January and July. The Ministry of the Economy then decides by formal order. The minister can deviate from the formula for economic or social reasons — as in August 2023, when the government froze the rate at 3% even though the formula pointed to 4.3%.

Rate history

Period	Net annual rate
Feb 2026 - Jul 2026	1.50%
Aug 2025 - Jan 2026	1.70%
Feb 2025 - Jul 2025	2.40%
Feb 2023 - Jan 2025	3.00%
Aug 2022 - Jan 2023	2.00%
Feb 2020 - Jul 2022	0.50% to 1.00%

Source: ministerial orders published in the Journal officiel, Banque de France data.

3. How Interest Is Calculated

Livret A interest is calculated using the quinzaine system — a French quirk worth understanding. Each month has two periods: the 1st through the 15th and the 16th through the end of the month. For a sum to earn interest during a quinzaine, it must be in the account at the start of that quinzaine.

Practical rule for maximizing interest

Depositing money? Make the deposit before the 1st or 16th of the month. A deposit on January 30 earns interest from February 1; a deposit on February 2 has to wait until February 16.
Withdrawing money? Withdraw after the 1st or 16th. A withdrawal on the 17th preserves the interest from the 1st-15th quinzaine.

Worked example at 1.5%

Deposit EUR 10,000 on January 31, 2026. Over the full year, you earn around EUR 150 net interest, paid on December 31. If you had waited until February 2, you would lose the 1st-15th quinzaine — about EUR 6.25.

Interest is paid once a year, on December 31, and capitalized automatically. The new balance earns interest the next year (a modest but real compounding effect over time).

4. Deposit Limits and Rules

EUR 22,950

Individuals

EUR 76,500

Associations

Source: Article L221-4 of the French Monetary and Financial Code, Service-Public F2365. Limit raised to EUR 100,000 for property co-ownership syndicates with 100+ units, and uncapped for social-housing bodies (HLM).

Key rules

Minimum initial deposit: EUR 10 (EUR 1.50 at La Banque Postale, a historical exception).
Subsequent deposits: minimum EUR 10, no schedule required.
Withdrawals: free anytime, by branch, app, or transfer to a current account.
No management fees, no card, no checkbook (Livret A is not a current account).
One Livret A per person — Article L221-3 of the Code, enforced via tax administration cross-checks.

The limit can be exceeded by capitalized interest: if your Livret A hits EUR 22,950 and earns EUR 344.25 at 1.5%, the balance becomes EUR 23,294.25 on December 31. That is legal. What is forbidden is making a fresh deposit when the balance is already at or above the limit.

5. Tax Treatment and State Guarantee

Complete tax exemption

Livret A interest is fully exempt from French income tax and social contributions (CSG, CRDS, solidarity levy), under Article 157-7° of the French General Tax Code. Concretely, 1.5% gross equals 1.5% net in your pocket — unlike taxable bank savings accounts, where 30% flat tax must be deducted.

Put differently: a taxable bank account paying 1.5% gross only delivers about 1.05% net. The Livret A needs to be compared with a taxable account paying around 2.14% gross to match the same net return.

State guarantee

Your deposits are protected on two levels. First, by the Fonds de Garantie des Depots et de Resolution (FGDR) up to EUR 100,000 per depositor per institution — the standard French deposit guarantee. Second, by centralization at the Caisse des Depots: roughly 60% of Livret A deposits are held directly by this public financial institution, creating a de facto sovereign guarantee.

Real-world scenario: if your bank fails, Livret A deposits remain available within seven business days of an ACPR resolution decision, via the FGDR. No depositor has lost a cent on a Livret A since its creation in 1818.

6. Livret A for Expats and Non-Residents

One of the Livret A's underrated strengths is its openness. The official Service-Public fiche F2365 confirms: any individual can open a Livret A — no nationality, no age, no residency condition. That makes it a useful tool for expats moving to France, French citizens abroad, and even non-EU nationals who keep financial ties to France.

For French tax residents (expats included)

If you are officially a French tax resident — registered, declaring French taxes — opening a Livret A is straightforward at any French bank. Bring your passport or EU national ID, proof of French address dated within three months, and your French tax number (numero fiscal) if available.

For non-residents

Legally, the Livret A is open to non-residents too (Service-Public F2365). In practice, bank willingness varies:

Traditional banks (BNP Paribas, Societe Generale): generally more flexible, but expect more documentation and an in-branch process.
Online banks (Boursorama, Fortuneo): usually require French residency or an existing relationship.
La Banque Postale: sometimes accepts non-residents with proof of a French connection (family, property, employment).

Non-residents should expect taxation on the interest in their country of residence, even though France itself does not tax it. Always check your bilateral tax treaty.

Expat tip: if you are new to France and not yet a tax resident, start by reading our guide on opening a bank account in France. Without a French current account, opening a Livret A is rarely practical.

Alternatives for non-residents who cannot open a Livret A

International banks with a French presence (HSBC France, ING International).
Pan-EU digital banks (Revolut, N26) for current accounts and savings — note: no Livret A available there.
Some home-country banks offering France-based euro accounts.

7. How to Open in 5 Steps

Check eligibility

Confirm you do not already hold a Livret A elsewhere. If you do, close it first — the tax administration cross-checks every new opening.

Pick a bank

Terms are identical everywhere. Choose based on service quality, ease of transfers, and whether you need a physical branch. See our online vs traditional banks comparison.

Gather documents

Valid ID (passport or EU national ID), proof of French address dated within three months, French tax number if you have one.

Make initial deposit

Minimum EUR 10 (EUR 1.50 at La Banque Postale). Via card, transfer, or check depending on the bank.

Time your future deposits

Deposit before the 1st or 16th of the month, withdraw after these dates, to maximize quinzaine interest.

Where to open

Traditional banks: BNP Paribas, Societe Generale, Credit Agricole, LCL, Credit Mutuel — branch opening in 3 to 7 days.
Online banks: Boursorama, Fortuneo, Hello bank!, Monabanq — fully online in 15 to 30 minutes (usually requires opening a current account at the same bank).
La Banque Postale: the only bank accepting an EUR 1.50 minimum deposit — useful for opening a Livret A for a child.
Caisses d'Epargne: historical Livret A distributor since 1818.

8. Livret A vs LDDS, LEP, Life Insurance

The Livret A rarely makes sense as your only savings vehicle. Here is how the main French savings products compare in 2026.

Product	Net rate	Limit	Tax	Access
Livret A	1.5%	EUR 22,950	Exempt	Everyone
LDDS	1.5%	EUR 12,000	Exempt	French residents
LEP	2.5%	EUR 10,000	Exempt	Low-income
Livret Jeune	≥ 1.5%	EUR 1,600	Exempt	Age 12-25
CEL	1.0%	EUR 15,300	30% PFU	Everyone
Life insurance (EUR fund)	2.6% (2024)	None	Advantaged after 8 years	Everyone

Sources: Service-Public F2365, F2367, F2368. Average 2024 EUR-fund yield = 2.60% (ACPR / France Assureurs report).

LEP: the overlooked 2.5% option

The LEP (Livret d'Epargne Populaire) is the best regulated savings account at 2.5% net — a full point above the Livret A. It is reserved for low-income households: in metropolitan France for 2026, a single person's reference fiscal income must not exceed about EUR 23,028 (Service-Public F2367). Around 19 million French taxpayers qualify, but only about 11 million hold one. If you are within the income cap, open the LEP before the Livret A.

LDDS: the natural Livret A complement

The LDDS (Livret de Developpement Durable et Solidaire) pays the same 1.5% as the Livret A, with a EUR 12,000 limit. Stack the two and you get EUR 34,950 of tax-free net savings at 1.5%. Reserved for French tax residents.

Beyond the regulated savings: life insurance

Once Livret A and LDDS are full, life insurance EUR funds become the natural extension. Average yield in 2024 was 2.60% (France Assureurs), with no deposit cap and significant tax advantages after 8 years. See our complete life insurance guide for the mechanics.

9. Savings Strategy in 2026

The Livret A still has a place in 2026 — but as one brick in a diversified strategy, not the entire wall. Here is a typical allocation for a French saver or French-resident expat.

Recommended savings pyramid

Emergency fund (3-6 months of expenses): Livret A + LDDS, fully liquid, tax-free.
Short-term savings (1-3 years): LEP if eligible, otherwise Livret A.
Mid-term savings (5-10 years): life insurance EUR funds for safety, unit-linked funds for performance.
Long-term savings (retirement): PER, multi-asset life insurance, PEA for European stocks.

For a complete overview of French savings products, see our complete savings guide.

Simple rule: keep 3-6 months of expenses in your Livret A and LDDS as a safety cushion, then move excess savings into life insurance or a PEA depending on horizon and risk tolerance. Choosing the right current account is the starting point: see our guide to opening a bank account in France.

10. Common Mistakes to Avoid

Keeping all your wealth in Livret A.
Once your emergency cushion is built, the surplus loses purchasing power against long-term inflation. Diversifying becomes essential.
Depositing on the 2nd instead of the 30th of the previous month.
You lose one quinzaine of interest — about EUR 6 on EUR 10,000. Trivial as a one-off, but compounding over years it adds up.
Opening a second Livret A without closing the first.
The tax administration automatically detects double holdings: forced closure of the newer account plus a fiscal penalty equal to duplicate interest earned.
Ignoring the LEP when eligible.
One percentage point difference (2.5% vs 1.5%) on EUR 10,000 is EUR 100 net per year. Over 5 years, more than EUR 500.
Confusing the limit with the balance.
The EUR 22,950 cap is on cumulative deposits. Capitalized interest can push the balance well beyond, perfectly legally.

11. 2026-2027 Outlook

Net outflows in early 2026

According to Caisse des Depots monthly data, the Livret A has shown net outflows in several months of early 2026 — chiefly because of the rate cut to 1.5% and the renewed appeal of competing products (boosted bank promo savings accounts, life insurance EUR funds yielding 2.60% in 2024). This is a rational reallocation, not a sign of weakness in the product itself.

February-July 2026 outlook

The current 1.5% rate is locked in through July 31, 2026. The next review lands on August 1, 2026, on a Banque de France proposal. With inflation hovering around 0.8% to 1% over six months, the formula argues for holding around 1.5% or slightly below. The government can still override the formula.

Common-sense rule: do not move your Livret A based on micro rate predictions. For small amounts or short horizons, the security, liquidity, and tax exemption are unbeatable. For larger amounts or long horizons, life insurance or a diversified mix wins.

12. Frequently Asked Questions

What is the Livret A interest rate in 2026?▼

The Livret A pays 1.5% net since February 1, 2026, down from 1.7% in the second half of 2025, 2.4% in early 2025, and 3% in 2024 (sources: Service-Public F2365 and Banque de France). The rate is revised twice a year on February 1 and August 1.

What is the Livret A deposit limit in 2026?▼

The Livret A deposit limit is EUR 22,950 for individuals and EUR 76,500 for non-profit associations (EUR 100,000 for property co-ownership syndicates with 100+ units), per Service-Public F2365. The limit applies to deposits only — capitalized interest can push the balance higher.

Is the Livret A really tax-free in France?▼

Yes, completely. Livret A interest is fully exempt from French income tax and social contributions (CSG, CRDS) under Article 157-7° of the French General Tax Code. It is one of the very few 100% net savings products in France.

Can foreigners or expats open a Livret A?▼

Yes. The Livret A imposes no nationality or tax-residency requirement (Service-Public F2365). Any individual can open one at a French bank, though banks may ask for proof of address in France. Non-residents may face taxation on the interest in their country of residence.

Can I hold multiple Livret A accounts?▼

No. One person can hold only one Livret A at a time (Article L221-3 of the French Monetary and Financial Code). Banks check with the tax administration before each opening. Each household member can have their own, including minors.

What is the difference between Livret A, LDDS, and LEP?▼

All three are tax-free regulated savings accounts. The Livret A is universal with EUR 22,950 limit at 1.5%. The LDDS pays the same 1.5% with a EUR 12,000 limit, reserved for French tax residents. The LEP, reserved for low-income households, pays 2.5% with a EUR 10,000 limit (Service-Public F2367).

What happens when the Livret A limit is reached?▼

You can no longer make new deposits, but interest continues to accrue and capitalize without any cap. To save beyond EUR 22,950, combine your Livret A with an LDDS (up to EUR 12,000 more at the same rate), an LEP if eligible (2.5%), or move excess savings into life insurance for longer horizons.

How does the quinzaine interest calculation work?▼

Livret A interest is calculated in 15-day periods (quinzaines) starting on the 1st and 16th of each month. A deposit made on the 17th only starts earning interest from the 1st of the next month. Deposit before the 1st or 16th, withdraw after those dates, to optimize your returns. Interest is paid on December 31 each year.

Is the Livret A guaranteed by the French state?▼

Yes, twice over. First by the FGDR (Fonds de Garantie des Depots et de Resolution) up to EUR 100,000 per depositor per bank — the standard French deposit guarantee. Second, by direct state guarantee: about 60% of Livret A funds are centralized at the Caisse des Depots, a public financial institution.

Can I transfer a Livret A from one bank to another?▼

Technically no — the Livret A is not transferable like a current account. To change banks, you close the existing account first, then open a new one at the second bank. Because only one Livret A is allowed at a time, the sequence matters: close first, open second.

Key Takeaways

Key Figures for Livret A in 2026