Livret A rate rises to 1.70% as LEP rate faces possible cut

Effective 1 August, the French Livret A savings account will see its net interest rate increase by 0.20 percentage points to 1.70 %, as recommended by the Banque de France and adopted by the Ministry of Economy. The modest rise is expected to add roughly €1 per €1,000 of deposits over six months and remains below the projected inflation rate of about 2 %.

The Livret d'Épargne Populaire (LEP), which offers a higher 2.50 % net rate to modest‑income savers, is slated to be reviewed this summer. Analysts warn the LEP could see its rate lowered after a recent reduction from 2.70 % to 2.50 %, even as the Livret A may continue to climb toward 1.80 % in future revisions. These divergent movements reflect the strict calculation formula applied to regulated French savings products.

The limited increase means the Livret A is unlikely to boost its collection dramatically, while the potential LEP cut could affect more than three million families that rely on it for inflation protection.