France increases Livret A interest rate to 1.7%

The interest rate for the Livret A, a popular regulated savings account in France, increased from 1.5% to 1.7% effective August 1, 2026. This adjustment, proposed by the Banque de France and announced by the Ministry of Economy, also applies to the Livret de développement durable et solidaire (LDDS). Meanwhile, the Livret d’épargne populaire (LEP) maintains a higher rate of 2.5% for lower-income households.

Despite the increase, the new rate may not fully offset inflation, which stood at 2.1% over the previous year as of July 2026. Consequently, savers may still experience a loss in real purchasing power.

Regarding account management, savers changing banks cannot directly transfer a Livret A due to the legal requirement of account uniqueness. Instead, the process requires closing the existing account at the old institution before opening a new one at the new bank. Users are advised to manage the timing of these steps carefully to avoid losing interest due to the 'quinzaine' (fortnightly) interest calculation rules.