French Regulated Savings Rates Cut in February 2026 Amid Declining Attractiveness

Starting February 1, 2026, the French government will reduce the interest rates on several popular regulated savings products, including the Livret A, Livret de développement durable et solidaire (LDDS), Livret d’épargne populaire (LEP), youth savings accounts (livret jeune), and the Compte épargne logement (CEL).

The Livret A rate will fall from 1.7% to 1.5%, while the LEP rate will decrease from 2.7% to 2.5%. The LDDS and livret jeune will also see their yields cut to 1.5%, and the CEL rate will drop to 1% in January 2026. Despite these reductions, the Livret A still offers a yield above the inflation rate, which stood at 0.8% in December 2025.

These cuts come after a significant decline in returns over the past year, with the Livret A’s rate halving from 3% early in 2025 to 1.7% by August, and now further reduced to 1.5%. Philippe Crevel, director of the Cercle de l’Épargne, highlighted that savers will experience a sharp drop in annual gains, for example, an individual with €7,500 in a Livret A will see yearly interest fall from €162 to €112.50, while those at the account ceiling of €22,950 will see gains reduce from €495.72 to €324.25.

This rapid decline in interest rates has led to a net withdrawal of €3.6 billion from Livret A accounts over the first eleven months of 2025, as French savers increasingly move funds away from this traditionally favored savings vehicle.

Additionally, regulatory changes mean that holding multiple similar regulated savings accounts is no longer permitted as of 2024, with duplicate accounts being transferred to non-interest-bearing products, though automated monitoring enforcement has been deferred to July 1, 2027.

Despite the rate cuts, many of these savings products remain exempt from income tax and social contributions, maintaining some appeal for conservative savers amidst a challenging economic environment.