France's Livret A Savings Account Rate to Rise to About 1.8% on August 1

The French Ministry of the Economy, in consultation with the Bank of France, will raise the interest rate on the Livret A savings account from the current 1.5% net to roughly 1.8% effective 1 August. The new rate is calculated using the statutory formula that averages the first‑quarter inflation rate (excluding tobacco) and the €STR interbank rate.

For the average French saver's balance of about €7,800, the increase translates into an extra €23 of interest per year. The same rate will apply to the Livret de Développement Durable et Solidaire (LDDS). The Livret d’Épargne Populaire (LEP), reserved for low‑income households, is expected to move to around 2.8–3% to stay at least 0.5 points above the Livret A.

Analysts note that life‑insurance euro‑funds already offer higher gross returns (around 2.6%), but those gains are taxed, whereas the Livret A remains tax‑free. The change is seen as a modest boost to household purchasing power after inflation peaked at about 2.4% earlier in the year.