The interest rate applied to funds in France’s regulated Livret A tax-free savings accounts is to rise from 2% to 3% on February 1, Finance Minister Bruno Le Maire has announced.
This rise is caused by inflation but is still considerably lower than France’s inflation rate, which currently sits around 6%.
Livret A interest rates already rose twice in 2022, from 0.5% to 1% and then from 1% to 2% in August.
People in France not making most of this account
This comes as figures show that French households keep an average of €17,600 in their current accounts.
At the end of October 2022, French current accounts contained a total of €528billion, a huge sum that is not earning interest and is therefore losing value as inflation continues at a high rate.
It is therefore advisable to put as much money as is sensible into a savings account such as the Livret A which are available from all of the main French banks.
See here for the thresholds and more about Livret As and other regulated French savings accounts.
Adults on low incomes can also put their money into a Livret d’épargne populaire (LEP), which has a 4.6% interest rate at the moment but this is set to rise to 6.1% on February 1.