France raises Livret A rate to 1.5%, boosting savers' returns

The French government has adjusted the Livret A interest rate to 1.5% per year, applying the statutory formula that links the rate to inflation and short‑term market rates. The increase, effective from mid‑July 2026, is tax‑free and calculated on a bi‑weekly (quinzaine) basis, meaning deposits earn interest from the next half‑month onward.

For a typical saver, the rise translates into modest gains: a balance of €5,000 would earn several tens of euros more over a full year, while those near the €22,950 ceiling see a more noticeable boost. Despite the uplift, the Livret A remains a low‑yield, secure product. Alternative online savings solutions are marketing higher gross returns—around 3% annually with monthly payouts—and fewer caps, while other French accounts such as the LEP or promotional bank books can offer rates up to 3.5% for a limited period.

The change aims to keep the Livret A competitive amid broader market offerings, though many savers continue to explore higher‑yield options.