Published on: September 17, 2024 | By: @rprasanth_kumar
In France, the banking system provides various types of accounts to meet different financial needs. Whether you’re managing daily expenses, saving for the future, investing, or running a business, there’s an account designed for you. From basic current accounts to tax-free savings options and investment accounts, understanding these options can help you make informed decisions and better manage your finances.
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Based on Type of Funds
Compte Courant (Current Account)
- Purpose: The most basic bank account, used for day-to-day banking. It is the one opened by default. Current accounts for business accounts are known as “compte bancaire professionnel” or simply “compte pro”.
- Features:
- Allows access to debit cards, online banking, checks, and direct debits (e.g., for bills).
- Typically used for salary deposits, payments, and withdrawals.
- No interest earned on the account balance.
Compte Épargne (Savings Account)
- Purpose: Designed for saving money and earning interest.
- Types of Savings Accounts:
- Livret A: Tax-free and popular in France, with a regulated interest rate. Open to everyone.
- Livret de Développement Durable et Solidaire (LDDS): Similar to Livret A, tax-free and with a regulated interest rate.
- Livret Jeune: A tax-free savings account for people between 12 and 25 years old.
- Plan Épargne Logement (PEL): A housing savings plan with fixed interest aimed at helping people save for property purchases or loans.
- Compte Épargne Logement (CEL): Another housing-related savings account with more flexible conditions but lower interest rates compared to the PEL.
- For more details, Banking: Types of Savings Accounts in France.
Based on Mode of Operation
Compte Individuel (Individual Account)
- Can be opened only by one person, called the account holder.
- The account holder has full control to manage, operate, and close the account.
Compte Joint (Joint Account)
- Opened by at least two people, with or without a family connection.
- Each participant is a co-holder, and they can operate the account individually (deposit, withdraw, write checks) with their own signature.
- All co-holders are equally responsible for any debts or payment issues. If a check bounces, all co-holders may face banking restrictions on all their accounts.
- It is possible to designate one person responsible for banking restrictions when opening the account.
- Accounts that can be opened as a joint account are:
- compte courant
- livret d’épargne bancaire
- compte à terme (term deposit account)
- compte-titre (securities account)
- Accounts that cannot be opened as a joint account are:
- regulated savings accounts (Livret A, LDDS, LEP, Livret Jeune, CEL, PEL).
- plan épargne en actions (PEA)
Compte Indivis (Undivided Account)
- Also known as “compte en indivision.
- Opened by at least two people, similar to a joint account, but it requires the consent of all co-holders for any transaction.
- Each transaction, such as writing a check, needs the signatures of all co-holders.
- A co-holder can be designated to manage daily banking operations.
- If a check bounces, all co-holders face banking restrictions on all their accounts.
- Accounts that can be opened as an undivided account are:
- compte courant
- compte-titre (securities account)
- Accounts that cannot be opened as an undivided account are:
- livret d’épargne bancaire
- compte à terme (term deposit account)
- regulated savings accounts (Livret A, LDDS, LEP, Livret Jeune, CEL, PEL).
- plan épargne en actions (PEA)
