Banque de France raises Livret A rate to 1.7% amid savers exodus
Banque de France raises Livret A to 1.7% as the savings account experiences net withdrawals.
Event / Economy
France Livret A Interest Rate Increase
Banque de France proposes raising the Livret A savings account interest rate from 1.5% to 1.7% effective August 1, 2026, citing inflation pressures linked to Middle East conflict. The move follows unprecedented net withdrawals over five consecutive months as savers sought better returns.
2 reported locations
Daily activity
0 articles0 articles
2026-08-15 to 2026-11-12 · UTC publication dates
Coverage begins 15 Jul, 11:32 UTC
Follow the documented timeline or explore the related reporting.
What happened
Banque de France proposes raising Livret A interest rate to 1.7%
The Banque de France proposed on July 15, 2026, to raise the interest rate on the Livret A savings account from 1.5% to 1.7%, effective August 1, 2026. The rate increase is attributed to inflation rebound linked to the Middle East conflict. The proposal requires approval from the French Finance Ministry (Bercy) on the same day.
Livret A balances reach 444.6 billion euros by end of May 2026
As of the end of May 2026, the 58 million Livret A accounts held accumulated balances of 444.6 billion euros, according to data from the Caisse des dépôts. These funds are directed toward social housing financing and urban policy initiatives.
Middle East conflict contributes to inflation increase in France
Inflation in France rebounded to 1.52% on a semi-annual basis and reached 2.4% year-over-year in May 2026, according to INSEE. The inflation surge is attributed to the effects of the conflict in the Middle East that began in late February.
Banque de France maintains LEP interest rate at 2.5%
The Banque de France proposed maintaining the interest rate on the Livret d'Épargne Populaire (LEP), a savings product for lower-income households, at 2.5% effective August 1, 2026. This rate exceeds the 2.2% that would result from the standard calculation formula, representing a policy boost to support popular savings. The LEP is held by approximately 12 million people.
Livret A experiences consecutive months of net withdrawals in 2026
The Livret A, France's most popular savings product, has experienced five consecutive months of net outflows since the beginning of 2026, an unprecedented situation since 2009. In May alone, savers withdrew 630 million euros from Livret A accounts. This decline follows the progressive reduction of the interest rate from 3% in 2023 to 1.5% in January 2026, making the product less attractive.
Read the coverage
2 alternative perspectives