Interest rate for Livret A savings accounts in France to drop from February 2026

The interest rate for France’s popular Livret A savings account is to drop from 1.7% to 1.5% from February 1, 2026.

The drop is due to low inflation rates in 2025, with France being one of the few European countries to keep annual inflation below EU targets last year.

However, the new rate is higher than the forecast 1.4% as a decision was made to artificially increase it in a bid to protect household purchasing power.

The new rate will be the lowest for the regulated and tax-free savings accounts level since February 2022, when interest rates were 1%. 

There are currently more than 50 million Livret A savings accounts in France, with account holders benefitting from the easily-accessible and tax-free funds for everything from property deposits and home renovations to holidays.

The rate for the low-income alternative Livret d'épargne populaire (LEP) will drop from 2.7% to 2.5% from February 1, 2026.

How is the interest rate calculated?

The government calculates the Livret A rate using two sets of data – an interest rate set by the European Central Bank (ECB), and a domestic household consumer cost index that takes into account the cost of several typical goods and services (excluding tobacco).

It is this latter rate that has been decreasing as France’s inflation has fallen significantly since the Covid-19 pandemic and in 2025 annual inflation remained below 1%. 

While this boosted household purchasing power last year, it has affected the maximum interest rate Livret A can offer. 

The calculations based on the two figures gave a post-February interest rate of 1.4%, however the French government and fiscal authorities have opted to increase the rate above this. 

“The Livret A is a preferred savings vehicle for the French. With this new rate, which is higher than inflation, household purchasing power is preserved,” said Finance Minister Roland Lescure.

Governor of the Banque de France, François Villeroy de Galhau also approved the higher rate. 

Authorities have been known to deviate from the initially-calculated figure in the past. 

During the Covid-19 pandemic and the subsequent inflation boom, former Finance Minister Bruno Le Maire limited the interest rates on Livret A accounts, despite the official calculation yielding significantly higher than expected rates.

The Livret A remains popular due to its protected and regulated tax-free status, and the ability for holders to move money between it and a linked current account immediately and with no penalty. 

Account-holders can deposit a maximum of €22,950 in an account – after this they cannot manually add more funds but interest (on the €22,950) is accrued and added at the end of each year.

Interest is calculated twice per month (on the 1st and 15th) and paid out at the end of the year, or when the account is closed if before this.