New law against multiple Livrets A

A LAW is being planned which would stop people from opening extra Livret A savings accounts when they already have one at another bank – a practice which is already illegal, but thought to be widespread.

A decree being planned by top administrative body the Conseil d’Etat would oblige banks to consult the tax authorities before allowing someone to open one of the accounts, which have a savings ceiling of €15,300 and currently an interest rate of 2.25%.

The banks would be entitled to a response in 48 hours. If the person is already listed as having a Livret A they would then be refused a new one unless they close the first one or give the new bank permission to close it and transfer the funds.

It is already illegal for people to hold more than one of the accounts however in practice there is little to stop them from doing so.

Details of multiple accounts are already available on the Ficoba (fichier des comptes bancaires), but only certain legally-empowered bodies can consult it (tax authorities, judges, customs...). In addition, they can only do so after a new account has been opened.

Offenders face minimal sanctions – a fine of 2% of the savings in all accounts bar the first – and where the amount would be less than €50 (eg. savings of €2,500 or less) the fine is not recovered.

It is planned the law would be effective from the start of next year.

The livret A has existed for 200 years. A doubling of its investment ceiling has been promised by President Hollande.

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