Starting August 1, 2025, the Livret A interest rate will decrease from 2.4% to 1.7%, marking the largest reduction since 2009 and the second decrease this year, following an earlier drop from 3% to 2.4% in February.

The Banque de France also suggested lowering the Livret d'épargne populaire (LEP) rate from 3.5% to 2.7%, despite its theoretical rate being only 2.2%, as part of broader adjustments to protect savings amid slowing inflation.

French citizens hold over €600 billion in regulated savings accounts like Livret A and LDDS, which are popular for their guaranteed, accessible, and tax-free features.

With over 955 billion euros immobilized in regulated savings accounts in 2024, these funds represent a potential economic stimulus, even as growth in these accounts remains modest.

The LEP has seen a significant increase in accounts, reaching nearly 12 million thanks to government support measures, up from 8.3 million at the end of 2022.

Despite these adjustments, regulated savings accounts like Livret A, LDDS, and LEP have seen only minimal growth of 0.4% since the start of the year, indicating challenges in attracting new deposits.

Despite the rate cuts, these savings accounts remain significant in France, with the total held in these accounts at the start of 2025 reflecting their importance in the national savings landscape.

Many French savers tend to prefer low-risk, guaranteed accounts, which could lead to reluctance in shifting to higher-yield but riskier investment options, even as returns decline.

The new 1.7% Livret A rate remains above the 1% inflation rate recorded in June 2025, helping to protect the purchasing power of savers, although it is a notable decrease from previous years.

The Ministry emphasizes that the rate still offers a real return above inflation, aiming to shield savers' interests despite the rate reduction.

Since late 2024, the CDC has allocated funds for ecological and energy transition projects, including potential financing for nuclear energy, while maintaining sufficient resources for social housing.

The rate cut is expected to ease financial pressures on social housing providers and banks, as they will owe less interest to depositors by year's end.