The French continue to withdraw from Livret A accounts — a historic decline since 2009

Paris – June 24, 2026: In May 2026, the French once again withdrew more money from their Livret A accounts — one of the country’s most popular regulated savings accounts — than was deposited. This marks the fifth consecutive month of net outflows: withdrawals in May exceeded deposits by 740 million euros. Thus, by the end of the first five months of this year, the cumulative net outflow reached 3.01 billion euros. Such a sustained decline last occurred in 2009.

The main reason for this situation is the reduction of the Livret A interest rate. At the beginning of 2025, the rate was still 3%, but it was lowered to 1.5% on February 1, 2026. This decrease has prompted many savers to look for other investment products with more attractive returns. Currently, life insurance products are especially popular, with a record net inflow of 13.9 billion euros in May 2026.

Despite the outflow of funds, the total size of the Livret A remains large: as of the end of May 2026, it stood at 447 billion euros. However, the actual return for savers is negative. Inflation in May 2026 was 2.4%, while the Livret A rate was only 1.5%, meaning savers’ purchasing power actually declined by about 0.9%. Specifically, for every 10,000 euros deposited, approximately 90 euros in value is lost each year.

The outlook for the Livret A interest rate is also not promising. Estimates as of May 30, 2026, indicate that the rate could fall further to around 1.4% by August 1, 2026. This contradicts earlier expectations that rates would rise to 1.6% or even 1.8% due to increasing inflation. A further rate cut is likely to exacerbate the outflow of funds from the Livret A.

Given the current trends, savers should reconsider their investment strategies to protect their wealth from inflation erosion. Demand for high-yield products such as life insurance or other investment opportunities is expected to continue growing. Regulators and financial service providers therefore face the challenge of maintaining savers’ trust in regulated savings products and offering attractive products.

The state of the Livret A reflects the current economic situation in France: inflation and low interest rates significantly impact saving behavior. Observers expect that as long as rates do not improve or new stimulus measures are not introduced, the trend of outflows from this regulated savings account may continue in the coming months.