French Livret A Interest Rate Cut to 1.5% Takes Effect February 2026

French Economy Minister Roland Lescure announced that the Livret A savings account interest rate will decrease from 1.7% to 1.5% starting February 1, 2026. This adjustment comes amid a slowing inflation rate, measured at 0.8% in December, and reflects a declining trend in returns, with the Livret A rate halving over the past year from 3% to 1.5%.

The rate calculation is determined semi-annually by the Banque de France, considering the European Central Bank's monetary policy and inflation excluding tobacco. Notably, the rate was rounded up to 1.5% rather than dropping to 1.4% to preserve households' purchasing power. Approximately 57 million French citizens hold a Livret A, making this change impactful for a large portion of the population.

This rate reduction benefits social housing financing, as borrowing costs for these actors are indexed to the Livret A rate, thereby enabling cheaper loans for social housing projects. While the lower rate represents less attractive yields for savers, banks and insurance companies anticipate promoting more competitive financial and life insurance products in response.

Additionally, the Livret d'épargne populaire (LEP), a savings option aimed at modest-income individuals, will see its interest rate set at 2.5%, down from 2.7%, also from February 1. Lescure emphasized the LEP's value for modest savers and encouraged eligible citizens to open accounts, noting that only 12 million LEP accounts exist despite 31 million potential beneficiaries.

This latest rate adjustment marks the second reduction within a year following earlier cuts from 3% to 2.4% in February 2025 and then 1.7% in August 2025, reflecting ongoing adjustments aligned with economic conditions.