Business · Markets · 2 hrs ago
Some French bank savings accounts now outpace the Livret A
Some bank savings accounts in France now pay more after tax than the Livret A, a popular regulated savings account.
The Livret A rate has been 1.70% since August and cannot be reviewed before February 1, 2027.
Some online banks offer standard rates that work out to between 1.82% and 1.93% after tax in the first year.
New customers may also get promotional rates as high as 4.50%, but these offers last only a few months.
Unlike interest on ordinary bank accounts, Livret A interest is free of tax and social charges.
Banks have raised savings rates as the European Central Bank’s deposit rate rose and lenders sought customer deposits.
The higher returns on some bank accounts are expected to last at least until February 2027.
Some French bank savings accounts now offer returns above the Livret A after tax.
The Livret A rate is 1.70% and will not be reviewed before 1 February 2027.
After the 31.4% flat tax, first-year net rates cited for selected accounts range from 1.82% to 1.93%.
Some banks also offer new customers boosted rates for a limited period, sometimes reaching 4.50%.
Banks are raising savings rates as they compete for deposits, which are a less costly source of funding than bond markets.
- Who
- French savers and banks offering savings accounts.
- What
- Some bank savings accounts now yield more than the Livret A after tax.
- When
- The accounts’ rates have risen since September; the Livret A rate is set to remain unchanged until 1 February 2027.
- Where
- France.
- Why
- Banks are competing for deposits, a less costly source of funding than the bond market.
This story does not have two clearly opposing sides.
This is an unprecedented situation since 2020 and 2021, when the Livret A yielded only 0.50%.
Banks are all looking for deposits, because they are a less costly source of funding than the bond market, where rates are rising sharply.
The European Central Bank deposit rate was 2%.
The Livret A rate was set at 1.70%.
The European Central Bank deposit rate rose to 2.50%.
Cashbee’s savings account rate reached 2.50%.
The Livret A rate is next scheduled for review.
- Livret A rate
- 1.70% since 1 August 2026
- Deposit rate
- 2.50% in September 2026, up from 2% in May
- Cashbee rate
- 2.50% from 1 October 2026
- First-year net rate
- 1.82% at Renault Bank; 1.88% at Cashbee; 1.93% at Distingo Bank
- Tax on interest
- 31.4% flat tax for standard savings accounts
Sources
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