France's Livret A rate to rise to 1.9% as savers turn to term deposits

The French government is expected to set the Livret A rate at roughly 1.9% in mid‑July, following a period of record net withdrawals from regulated savings accounts. Since May 2026, the Livret A and the Livret de Développement Durable et Solidaire (LDDS) have seen net outflows of €630 million and €140 million respectively, reducing the combined balance to €609.5 billion across about 58 million accounts. The trend reflects households shifting toward higher‑yielding products such as life‑insurance savings, which recorded a record €17.6 billion in contributions in April 2026.

At the same time, term deposits (compte à terme or DAT) are regaining popularity among French savers seeking a guaranteed return. Banks offer fixed rates for periods ranging from a few months to five years, with online providers like Hello Bank! allowing easy subscription. The product’s appeal lies in its predictability and the discipline imposed by locking funds, providing an alternative to low‑interest booklets for medium‑term financial goals.