The French continue to withdraw money from their Livret A – the largest decline since 2009

Paris – 24.06.2026: In May 2026, the French once again withdrew more money from Livret A, one of the country’s most popular regulated savings accounts, than was deposited. This is the fifth consecutive month showing a net outflow: in May, withdrawals exceeded deposits by up to 740 million euros. For the first five months of the year combined, the total accumulated decrease reached 3.01 billion euros. Such a prolonged decline was last recorded in 2009.

The reason for this development is mainly due to the reduction of the interest rate for Livret A. After the interest rate remained at 3% at the beginning of 2025, it was lowered to 1.5% on February 1, 2026. This sharp decrease has led many depositors to look for alternative investment products with more attractive returns. Currently, life insurance is very popular, with a record inflow of 13.9 billion euros in May 2026 alone.

Despite the outflow of funds, the total Livret A balance remains high: by the end of May 2026, the balance was 447 billion euros. However, the real yield for savers is negative. With an inflation rate of 2.4% in May 2026 compared to Livret A’s interest rate of 1.5%, savers are effectively losing about 0.9% in purchasing power. Specifically, a 10,000 euro deposit loses about 90 euros in value per year.

The outlook for Livret A interest rates is also unfavorable. Estimates as of May 30, 2026, predict that interest rates could drop further to around 1.4% on August 1, 2026. This is contrary to the initial expectation that rates would rise to 1.6% or even 1.8% due to increasing inflation. Further decreases will only increase the outflow of funds from Livret A.

Given the current situation, savers should reconsider their investment strategy to protect asset value against inflation. The search for higher-yield products such as life insurance or other investment opportunities is expected to continue to grow. Authorities and financial service providers face the challenge of maintaining savers’ confidence in regulated savings and creating attractive offers.

The situation of Livret A reflects the current economic picture in France, where inflation and low interest rates clearly affect savings behavior. Observers predict that the trend of withdrawals from regulated savings accounts may continue in the coming months, if interest rates do not improve or new incentives are not created.