Livret A rises to 1.7 percent on August 1

Paris – 15/07/2026: The interest rate on the French Livret A savings product will be raised to 1.7 percent on August 1, 2026. This was announced by Economy Minister Roland Lescure. This increases the annual interest rate by 0.2 percentage points from the 1.5 percent rate in effect since February 1. The decision also affects the Livret de développement durable et solidaire, whose interest rate is tied to that of the Livret A.

Lescure justified the increase by citing inflation that is limited but noticeable, as well as uncertainty resulting from the crisis in the Middle East. At the end of June, the minister had already stated that the rate would rise on August 1, but had left the exact figure open. Interest will now return to the level that applied from August 1, 2025, to January 31, 2026.

The Livret A is one of France’s most important regulated savings products. Its interest rate is set by the state, funds are available at any time, and returns are exempt from income tax and social security contributions. For private individuals, the deposit limit is 22,950 euros; accrued interest may increase the balance beyond that amount. These conditions make the product particularly attractive for short-term, readily available savings.

The Economy Minister decides on the rate on the basis of a recommendation from the Banque de France. The calculation is made at regular intervals and takes into account, in particular, average inflation excluding tobacco and short-term money market rates. In January, the rate was cut from 1.7 to 1.5 percent. At the time, the government pointed to a significant slowdown in price increases and followed the central bank’s recommendation.

The increase on August 1 follows months in which inflation has once again been more strongly influenced by energy prices and geopolitical risks. For savers, the new rate means higher nominal interest on their deposits. For a balance of 10,000 euros held throughout the year, the difference between 1.5 and 1.7 percent amounts mathematically to 20 euros gross per year; the actual interest amount depends on deposits and withdrawals over the course of the year.

Fixed monthly reference dates apply to the calculation of interest on the Livret A. The change taking effect on August 1, 2026, will therefore apply to balances that earn interest under these rules. The announcement did not provide further details on possible adjustments to the income-dependent LEP savings product. An official statement with the full new rates was initially still pending.