French savings rates set to rise as ECB hike influences Livret A and term accounts

The European Central Bank is scheduled to meet on 11 June and is expected to raise its deposit facility rate from 2 % to 2.25 %, with a possible further increase to 2.5 % in September. This move will steer the rates offered on French retail savings products.

The Livret A, France’s tax‑free savings account that currently yields 1.5 %, is due for its bi‑annual revision on 1 August. Analysts anticipate a modest increase to around 1.7‑1.8 % as the ECB’s higher rate feeds through the formula that combines inflation with a six‑month market average.

Term accounts are likely to react more quickly, with banks expected to raise advertised rates shortly after the ECB decision. Existing contracts keep their original rates, but new offers could reach 2.5 % gross, delivering roughly 1.7 % net after the 31.4 % tax.

Fintech and online‑only banks are promoting alternative savings solutions that calculate interest daily, accept deposits from as little as €1, and use mechanisms such as “Saveback” (round‑up purchases) to boost balances. While these products can out‑perform the Livret A, they carry market volatility and fee considerations that savers must weigh against the safety and tax advantages of the traditional account.