Interest rate of Livret A is maintained at 3% – Aug 2023

The French Minister of Economy, Finance and Industrial and Digital Sovereignty, Mr. Bruno Le Maire has accepted the recommendation of the Bank of France by maintaining the Livret A savings account interest rate at 3%. Earlier, media reports were prediciting an increase to 4%.

Important highlights of the announcement: 

• Livret A interest rate remains unchanged at 3% on August 1, 2023 with the guarantee of maintaining this interest rate for the next  18 months, until January 2025.
• This decision is based on the expectaton that inflation rate should fall under 3% in 2024.
• Livret de développement durable et solidaire (LDDS) also will be maintained with an interest rate of 3%.  It is fully correlated with that of Livret A and so this rate will be maintained until January 2025. 
• Livret d’épargne populaire (LEP) will remain stable at 6% against 6.1% in February 2023. But, it’s maximum limit will increase from 7,700 euros to 10,000 euros, excluding interest from 1st October 2023.
• The minimum interest rate of the Livret Jeune is maintained at 3% until January 2025. banks are allowed to chosse thier own interest rate but it cannot be lower than that of the Livret A.
• The possibility of unocking the Plan épargne logement (PEL), a home savings plan before the legal period of 4 years, to finance energy renovation works. Currently, the PEL is blocked for 4 years and can be released only when buying a home.