Last updated on: January 16, 2025 | By: @rprasanth_kumar
A summary of the various savings accounts offered by Banks in France. Some are tax-free, while others are taxed 30 % flat tax or according to your income tax bracket. The interest rates are regularly updated based on inflation.
Since 1st July 2024, a new tax-free savings product called the “Plan épargne avenir climat (PEAC)” is available for people under 21 years old in France. For more details, PEAC: A new alternative for Livret A or Livret Jeune or Assurance Vie or CTO?
For 2025, the Bank of France has forecasted an average inflation rate of 1.5%. This means the real return (adjusted for inflation) will be the following until the next rate revision.
- Livret A & LDDS = 0.9% net (2.4% – 1.5%)
- LEP = 2% net (3.5% – 1.5%)
- PEL & CEL = -0.225% net (1.225% -1.5%).
Table of Contents
1. Livret A
| Whom | All public irrespective of their age, nationality or residence in France |
| Where | Banks in France |
| Minimum Balance | 10 € |
| Contract Duration | None |
| Maximum Balance | 22,950 € excluding interests earned |
| Interest Rate | 2.4 % net from 1st February 2025 |
| Interest Payment | Calculated every 15 days on 1st & 16th day of the month. Paid annually on 31st December |
| Withdrawal | Anytime of the year |
| Taxation | Exempt from taxes and social charges |
2. Livret jeune
| Whom | 12-25 years old |
| Where | Banks in France |
| Minimum Balance | 10 € |
| Contract Duration | None |
| Maximum Balance | 1,600 € excluding interests earned |
| Interest Rate | 2.4 % net from 1st February 2025 |
| Interest Payment | Calculated every 15 days on 1st & 16th day of the month. Paid annually on 31st December |
| Withdrawal | Anytime of the year |
| Taxation | Exempt from taxes and social charges |
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3. Livret d’épargne populaire (LEP)
| Whom | Low income households based on RFR (Revenu fiscal de référence) available in their French tax declarations |
| Where | Banks in France |
| Minimum Balance | 30 € |
| Contract Duration | None |
| Maximum Balance | 10,000 € excluding interests earned |
| Interest Rate | 3.5 % net from 1st February 2025 |
| Interest Payment | Calculated every 15 days on 1st & 16th day of the month. Paid annually on 31st December |
| Withdrawal | Anytime of the year |
| Taxation | Exempt from taxes and social charges |
4. Livret de développement durable et solidaire (LDDS)
| Whom | Adults who are tax residents in France |
| Where | Banks in France |
| Minimum Balance | 15 € |
| Contract Duration | None |
| Maximum Balance | 12,000 € excluding interests earned |
| Interest Rate | 2.4 % net from 1st February 2025 |
| Interest Payment | Calculated every 15 days on 1st & 16th day of the month. Paid annually on 31st December |
| Withdrawal | Anytime of the year |
| Taxation | Exempt from taxes and social charges |
5. Plan épargne logement (PEL)
| Whom | All public irrespective of their age, nationality or residence in France |
| Where | Banks in France |
| Minimum Balance | 225 € for opening the account & then minimum mandatory payments of 540 € every year |
| Contract Duration | 4 – 10 years |
| Maximum Balance | 61,200 € excluding interests earned |
| Interest Rate (fixed) | 1.75 % for accounts opened from 1st Jan 2025 2.25 % for accounts opened from 1st Jan 2024 – 31st Dec 2024 2 % for accounts opened between 1st Jan 2023 – 31st Dec 2023 1 % for accounts opened between 1st Aug 2016 – 31st Dec 2022 |
| Interest Payment | Calculated every 15 days on 1st & 16th day of the month. Paid annually on 31st December |
| Withdrawal | After 4 years. Withdrawals before 4 years will lead to automatic account closue. |
| Taxation | 30 % flat tax or according to income tax bracket |
6. Compte épargne logement (CEL)
| Whom | All public irrespective of their age, nationality or residence in France |
| Where | Banks in France |
| Minimum Balance | 300 € for opening the account & then minimum mandatory payments of 75 € every year |
| Contract Duration | None |
| Maximum Balance | 15,300 € excluding interests earned |
| Interest Rate | 1.75% |
| Interest Payment | Calculated every 15 days on 1st & 16th day of the month. Paid annually on 31st December |
| Withdrawal | Anytime of the year but the remaining balance has to be 300 € |
| Taxation | 30 % flat tax or according to income tax bracket |
7. Compte à terme (CAT)
| Whom | All public |
| Where | Banks in France |
| Minimum Balance | Based on the contract signed with the bank for a minimum duration of 1 month |
| Contract Duration | |
| Maximum Balance | |
Interest Rate | Fixed by the bank and mentioned in the contract (fixed, progressive or variable interest). Interest compounded eery year on 31st Dec. No interest paid for pre-closures |
| Interest Payment | Based on the contract signed with the bank |
| Withdrawal | |
| Taxation | 30 % flat tax or according to income tax bracket |
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8. Compte d’épargne ou livret d’épargne bancaire
| Whom | All public |
| Where | Banks in France |
| Minimum Balance | Based on the contract signed with the bank |
| Contract Duration | |
| Maximum Balance | |
| Interest Rate | Fixed by the bank between 0.2% and 1.5% for ordinary savings accounts and up to 4% for super savings accounts (limited period) |
| Interest Payment | Calculated every 15 days on 1st & 16th day of the month. Paid annually on 31st December |
| Withdrawal | Based on the contract signed with the bank |
| Taxation | 30 % flat tax or according to income tax bracket |
Sources & References
- Taux d’usure (maximum interest rates) from Banque de France
- Livret A – ServicePublic.fr
- Livret jeune – ServicePublic.fr
- Livret d’épargne populaire (LEP) – ServicePublic.fr
- Livret de développement durable et solidaire (LDDS) – ServicePublic.fr
- Plan épargne logement (PEL) – ServicePublic.fr
- Compte épargne logement (CEL) – ServicePublic.fr
- Compte à terme (CAT) – ServicePublic.fr
- Compte d’épargne ou livret d’épargne bancaire – ServicePublic.fr
DISCLAIMER
Any finance-related information shared is not professional legal, tax, or investment advice. The information provided is of an educational and general nature and is not investment advice within the meaning of Articles L. 321-1 and D. 321-1 of the French Monetary and Financial Code. Investment carries risks of loss and past performance does not guarantee future performance. Please consult a financial advisor for any professional advice.
Thanks for the article! Was helpful info regarding banking in France.
Update: LEP interest reduced to 4% from 1st Aug 2024. It was 5% until July.