1. Regulated Savings Accounts
Regulated savings accounts are government-guaranteed savings accounts whose rates and conditions are set by public authorities. Their main advantage: interest is completely exempt from taxes and social contributions.
Livret A
The Livret A is the most popular savings account in France, with over 55 million holders. It's the foundation of any savings strategy.
- • Rate: 3% net (since February 2023)
- • Ceiling: €22,950
- • Taxation: Exempt from taxes and social contributions
- • Availability: Immediate, no fees
LDDS (Sustainable Development Savings Account)
Formerly known as Codevi then LDD, the LDDS has the same characteristics as the Livret A but with a lower ceiling. The funds finance ecological transition projects.
- • Rate: 3% net
- • Ceiling: €12,000
- • Taxation: Exempt
- • Condition: Only 1 LDDS per person
LEP (Popular Savings Account)
The LEP offers the best guaranteed rate on the market, reserved for modest-income households. A real advantage if you're eligible.
- • Rate: 4% net (since August 2024)
- • Ceiling: €10,000
- • Condition: Tax reference income below a threshold
- • 2024 income threshold: €22,419 (single tax unit)
2. 2026 Rates Comparison
| Investment | Rate | Ceiling | Taxation |
|---|---|---|---|
| LEP | 4% | €10,000 | Exempt |
| Livret A | 3% | €22,950 | Exempt |
| LDDS | 3% | €12,000 | Exempt |
| PEL (opened in 2024) | 2.25% | €61,200 | 30% flat tax |
| CEL | 2% | €15,300 | 30% flat tax |
| Livret Jeune | ≥ 3% | €1,600 | Exempt |
Rates as of February 2026. Livret Jeune rate varies by bank (minimum = Livret A rate).
3. Housing Savings (PEL, CEL)
PEL (Housing Savings Plan)
The PEL is a savings account locked for a minimum of 4 years, which allows obtaining a mortgage at a preferential rate. Note: PELs opened after 2018 are subject to the 30% flat tax.
- Minimum deposit: €540/year (€45/month)
- 2024 PEL rate: 2.25% gross (1.575% net after flat tax)
- Duration: 4 to 10 years
- Mortgage: Up to €92,000
PEL: Worth It?
With a net rate of 1.575% (after flat tax), the PEL is less attractive than the 3% net Livret A. Its interest lies mainly in the housing loan rights if mortgage rates rise significantly.
CEL (Housing Savings Account)
More flexible than the PEL, the CEL allows free withdrawals after an 18-month lock-up period. However, its rate is lower.
4. Life Insurance
Life insurance is the preferred investment of French people for medium/long-term savings. It combines security (euros funds) and performance(unit-linked).
Life Insurance Advantages
- Favorable taxation after 8 years (€4,600/€9,200 allowance)
- Easy inheritance transfer (€152,500 allowance per beneficiary)
- Diversification possible (euros funds + unit-linked)
- Savings availability (withdrawals possible at any time)
2024 Euros Fund Returns
The best euros funds returned between 2.5% and 4% in 2024. Online contracts generally offer the best returns thanks to reduced fees.
5. The PEA (Stock Savings Plan)
The PEA is a tax wrapper for investing in European stocks with capital gains tax exemption after 5 years (social contributions still apply).
PEA Characteristics
- Deposit ceiling: €150,000
- Taxation after 5 years: Income tax exempt (17.2% social contributions only)
- Supports: Stocks, mutual funds, PEA-eligible ETFs
- Condition: Only 1 PEA per person
PEA: For Whom?
The PEA suits savers who want to invest in stocks long-term (> 5 years) and accept the risk of capital loss in exchange for higher return potential.
6. Savings Strategy: The Pyramid
A good savings strategy is built in stages, from safest to riskiest:
1. Emergency Fund (Priority)
3 to 6 months of expenses in Livret A + LDDS
2. Medium-Term Savings (2-8 years)
Life insurance euros funds, LEP if eligible
3. Long-Term Savings (> 8 years)
Life insurance unit-linked, PEA, real estate (SCPI)
How Much to Save Monthly?
The classic rule is to save 10 to 20% of your income. Adapt this percentage to your situation:
- Young worker: 10-15% (building emergency fund)
- Established worker: 15-25% (diversification, projects)
- Near retirement: Maximum possible (securing assets)
7. Frequently Asked Questions
What is the Livret A interest rate in 2026?
The Livret A rate is 3% net since February 1, 2023. This rate is revised twice a year (February 1 and August 1) based on an inflation formula.
What is the best risk-free investment in France?
The LEP (Livret d'Épargne Populaire) currently offers the best rate (4%) for eligible savers (modest income). Otherwise, the Livret A and LDDS at 3% are the references.
How much should I save each month?
The classic rule is to save 10 to 20% of your income. Start by building an emergency fund of 3 to 6 months of expenses, then diversify into other investments.
What is the difference between Livret A and LDDS?
Both have the same rate (3%) and are tax-free. The difference is the ceiling: €22,950 for Livret A, €12,000 for LDDS. The LDDS funds sustainable projects.
Sources
- • Bank of France: banque-france.fr
- • Service-Public.fr - Savings: service-public.fr
- • General Treasury Directorate
- • Monetary and Financial Code (Légifrance)
Disclaimer: The information in this article is provided for informational purposes only. Rates mentioned are indicative and subject to change. This content does not constitute investment advice. Consult a financial advisor for savings decisions suited to your personal situation.
Last updated: February 10, 2026