Updated October 2026. France's regulated savings accounts pay a state-set, tax-free rate and sit alongside, not instead of, a current account. The Livret A and LDDS both pay 1.70% since 1 August 2026, the LEP pays 2.50% for lower-income households, and the PEL locks in 2.00% for plans opened in 2026. Every other savings product is taxed at the 31.4% flat tax, so a taxable account must pay more than 2.48% gross just to match the Livret A.
Key takeaways
- The Livret A and LDDS both pay 1.70% since 1 August 2026, tax-free, but the LDDS is capped at €12,000 versus the Livret A's €22,950 and is open only to French tax residents.
- The LEP pays 2.50%, the best tax-free rate, but only to French tax residents under an income ceiling of roughly €23,028 for one part in 2026.
- The PEL locks its 2.00% gross rate (2026 openings) for the life of the plan, but interest is taxed, so the net return of around 1.40% currently trails the tax-free Livret A.
- Taxable livrets and term accounts pay the 31.4% flat tax (since 1 January 2026); over two years, the Livret A out-earns every boosted livret in our calculation except Cashbee's 2.50% base rate.
- Foreign providers such as Trade Republic (2.25%), Klarna and Raisin withhold no French tax, so you declare the interest yourself.
- None of these accounts is a current account: no card, no bill payments, no overdraft, and opening one does not require holding a current account at the same bank.
- Livret A, LDDS, and LEP balances carry a separate French state guarantee, distinct from the FGDR bank deposit protection.
What Are France's Regulated Savings Accounts?
France's main regulated savings accounts, known as épargne réglementée, pay a rate fixed by the state rather than by the bank. The rate is reviewed twice a year, on 1 February and 1 August, using a formula based on the average of the short-term €STR rate and inflation excluding tobacco, with a floor of 0.50%. The four covered here are the Livret A, the LDDS (Livret de développement durable et solidaire), the LEP (Livret d'épargne populaire), and the PEL (Plan épargne logement).
Interest on the Livret A, LDDS, and LEP is fully exempt from income tax and social charges. The PEL is taxed differently, at a flat 30%, which the 2026 finance law left unchanged even as the standard flat tax on other savings rose to 31.4%. There is also a Livret Jeune for 12 to 25-year-olds, tax-free, with a rate set by each bank but floored at the Livret A's 1.70% (most pay 1.70% to 2.00% in October 2026) and a small €1,600 ceiling. The CEL (compte épargne logement) pays 1.25% gross since 1 August 2026, two-thirds of the Livret A rate, and is taxable, so it only makes sense if you want its attached home-loan right.
One Livret A per person
What Are the Livret A and LDDS Rates in 2026?
The Livret A can be opened at any French bank, though the deposited funds are centralised at the Caisse des Dépôts. It pays 1.70% from 1 August 2026, on deposits up to a €22,950 ceiling, with a typical minimum opening deposit around €10. Interest is calculated by fortnight and paid annually on 31 December. The rate has moved from 2.4% in February 2025 to 1.7% in August 2025, down to 1.5% in February 2026, and back up to 1.70% in August 2026. It is available to almost everyone, including minors and non-residents, with instant access and no notice period.
The LDDS pays the same 1.70% rate, aligned with the Livret A since August 2026, and is equally tax-free. Its ceiling is lower at €12,000, and you may hold one per person, or two per couple. The key difference: the LDDS is not open to non-residents, it requires French tax residency, which the Livret A does not.
For a full factual profile of the Livret A, including its definition, tax treatment, and what it is not, see our Livret A entity page.
Who Can Open a LEP and What Does It Pay?
The LEP pays 2.50%, unchanged since 1 February 2026, the best tax-free rate among the regulated accounts. Deposits are capped at €10,000, with a minimum opening deposit of €30, then €10 afterwards. The rate has fallen steadily from 6.1% in February 2023 to 4% in August 2024, 3.5% in February 2025, 2.7% in August 2025, and 2.5% in February 2026, so the gap over the Livret A has narrowed to its smallest since 2022.
Eligibility is income-linked. For 2026, based on your reference tax income (RFR) from year N-2 or N-1, the ceiling is roughly €23,028 for one part, €26,103 for 1.25 parts, €29,177 for 1.5 parts, €35,326 for two parts, plus around €6,149 per extra half-part. You must be a French tax resident, and you may hold one LEP per taxpayer, or two for a married or pacsed couple.
Newcomers without a French tax notice
How Does the PEL Work and Is It Worth It?
A PEL opened from 1 January 2026 pays 2.00% gross, locked in for the entire life of the plan regardless of later rate changes; PELs opened in 2025 pay 1.75%, and those opened in 2024 pay 2.25%. The ceiling is €61,200, with a minimum opening deposit of €225 plus mandatory annual deposits of around €540 (roughly €45 a month). A PEL must run at least 4 years, deposits are allowed for up to 10 years, and the plan automatically converts to an ordinary savings account at 15 years.
Interest is taxed at the flat 30% rate, which the PEL kept even as the standard flat tax rose to 31.4% in 2026, giving a net yield of roughly 1.40%. The state bonus (prime d'État) that used to reward PEL savers has been abolished for every plan opened since 2018. The real reason to open one today is the attached droit à prêt: a right to a home loan of up to €92,000 at a fixed rate of around 3.20% for 2026-opened plans, usable after 4 years for a main residence.
Yield versus loan right
What Are the Ceilings and Who Is Eligible?
The table below summarises the four accounts side by side. All four rates are set or reviewed by the state; only the Livret A, LDDS, and LEP are entirely tax-free.
| Account | Rate (October 2026) | Ceiling | Who can open it |
|---|---|---|---|
| Livret A | 1.70%, tax-free | €22,950 | Almost anyone, incl. minors and non-residents |
| LDDS | 1.70%, tax-free | €12,000 | French tax residents only |
| LEP | 2.50%, tax-free | €10,000 | French tax residents under an income ceiling |
| PEL (2026 openings) | 2.00% gross, taxed at 30% | €61,200 | Anyone able to meet the mandatory deposits |
Sources: info.gouv.fr, service-public.gouv.fr, Banque de France, and the official notice in the Journal officiel of 29 July 2026 (Livret A, LDDS and LEP rates), as of October 2026. Rates and ceilings are set or reviewed by the French state and can change; confirm the current figures before opening an account.
Do Boosted Livrets Beat the Livret A After the 31.4% Flat Tax?
Bank livrets outside the regulated family are taxed at the 31.4% flat tax (PFU) since 1 January 2026: 12.8% income tax plus 18.6% social levies, after the 2026 social security finance law raised the CSG from 9.2% to 10.6%. A French bank withholds it at source. The break-even is simple: a taxable rate must exceed 2.48% gross to match the tax-free Livret A at 1.70%. Banks clear that bar with teaser rates of 3% to 5.50% that last two to twelve months, then fall back to a base rate.
The table runs the sum on €10,000 over one and two years. In year one, the 12-month boosts from BforBank and Monabanq beat the Livret A by €36 to €43. Over two years, the Livret A's €340 beats every boosted livret, because base rates of 1.20% to 2.00% net far less once taxed; Monabanq also starts charging €3 a month for its required current account. Only Cashbee's 2.50% base edges ahead, by €3. Promo hopping every few months can do better, but only if you move the money each time the boost ends.
| Account | Rate (October 2026) | Year 1 gross | Year 1 net | 2 years net |
|---|---|---|---|---|
| LEP (if eligible) | 2.50%, tax-free | €250.00 | €250.00 | €500.00 |
| Cashbee | 2.50% base | €250.00 | €171.50 | €343.00 |
| Livret A or LDDS | 1.70%, tax-free | €170.00 | €170.00 | €340.00 |
| Distingo | 4.50% for 3 months, then 2.00% | €262.50 | €180.08 | €317.28 |
| Meilleurtaux Livret | 5.50% for 2 months, then 2.00% | €258.33 | €177.22 | €314.42 |
| Fortuneo Livret + | 5.50% for 3 months, then 1.80% | €272.50 | €186.94 | €310.42 |
| Trade Republic cash | 2.25%, no promo | €225.00 | €154.35 | €308.70 |
| BforBank Bfor+ | 3.10% for 12 months, then 1.20% | €310.00 | €212.66 | €294.98 |
| Zesto (Renault Bank) | 2.10%, no promo | €210.00 | €144.06 | €288.12 |
| Monabanq Compte Rentabilis | 3.00% for 12 months, then 1.70% | €300.00 | €205.80 | €286.42 |
| Livret Bourso+ | 1.50% | €150.00 | €102.90 | €205.80 |
The order of filling follows from the table. A household with €30,000 of emergency savings fills the Livret A (€22,950) and puts the rest in an LDDS (€7,050 of its €12,000 ceiling), all tax-free with instant access. If your reference tax income is under €23,028, fill the LEP first. Only money above those ceilings belongs in a taxable livret.
Are Fixed-Term Accounts and Foreign Platforms Worth It?
A fixed-term account (compte à terme, or CAT) locks a rate for a set period, usually with no early exit or a penalty. The best fixed rates open to French savers in October 2026 come through Raisin, a platform that places your money with partner banks across the EU: up to 2.91% for 12 months, 3.33% for 24 months and 3.38% for 36 months. French banks pay less: Distingo 3.00% for 36 months, BoursoBank about 2.30% for 12 months.
Two details decide whether a foreign platform is worth it. First, tax: Raisin's partner banks, Klarna (Sweden) and Trade Republic (Germany) withhold no French tax, so you declare the interest yourself at 31.4%, and the foreign accounts go on form 3916 each year on impots.gouv.fr. Second, protection: each issuing bank is covered up to €100,000 by its own national scheme (Italy for IBL Banca, Slovakia for Privatbanka, Sweden for Klarna), not the FGDR, and a claim would be handled across borders. Trade Republic places cash with partner banks under the German scheme, which the FGDR's own note on neobanks confirms is not FGDR cover.
| Account | Term | Gross a year | Net a year | Minimum | Tax withheld / protection |
|---|---|---|---|---|---|
| Raisin (best issuer) | 24 months | 3.33% | 2.28% | €2,000 to €10,000 | No, self-declare / issuer's national scheme |
| Raisin (best issuer) | 12 months | 2.91% | 2.00% | €2,000 to €10,000 | No, self-declare / issuer's national scheme |
| Klarna CAT | 48 months | 3.05% | 2.09% | €1 | No, self-declare / Swedish scheme |
| Distingo CAT | 36 months | 3.00% | 2.06% | €1,000 | Yes / FGDR |
| Hello bank! CAT | 6 months | 2.60% | 1.78% | €10,000 | Yes / FGDR |
| BoursoBank CAT | 12 months | 2.30% | 1.58% | €5,000 | Yes / FGDR |
| Trade Republic cash (no lock-in) | Instant access | 2.25% up to €50,000 | 1.54% | €0 | No, self-declare / German scheme via partner banks |
For €50,000 you can lock away for two years, a ladder of Raisin issuers at about 3.33% is the best fixed return, with each issuer kept under €100,000. For savers who want a permanent rate without chasing promotions, Trade Republic's 2.25% (since 12 May 2026) is the simplest, as long as you accept the yearly self-declaration. Forum members point out that its cash, unlike its securities, sits with partner banks covered to €100,000.
How Is This Different From a Current Account?
A regulated savings account is not a substitute for a current account (compte courant). None of the regulated accounts above come with a bank card, let you set up direct debits for rent or bills, or offer an overdraft. They exist purely to hold money and earn interest, with funds moved in and out via transfer to and from a linked current account.
You also do not need to bank with the same institution for both. Opening a Livret A does not require holding a current account at that bank, though in practice many banks prefer it and some LDDS or LEP offers are easiest to set up alongside an existing current account at the same bank. If you have not opened a current account yet, our guide to opening a bank account in France covers the documents and options first.
Frequently Asked Questions
What is the Livret A rate in 2026?
The Livret A pays 1.70% from 1 August 2026, unchanged from the previous review until at least 31 January 2027. Interest is exempt from income tax and social charges, and deposits are capped at €22,950.
What is the LDDS and how is it different from the Livret A?
The LDDS pays the same 1.70% rate as the Livret A since August 2026 and is also tax-free, but its ceiling is lower at €12,000 and it is only open to French tax residents, unlike the Livret A which any resident, including non-residents and minors, can open.
Who can open a LEP?
A LEP is open to French tax residents whose reference tax income (RFR) falls under a published ceiling, roughly €23,028 for a single person for 2026. It pays 2.50%, the best tax-free rate among regulated accounts, on deposits up to €10,000.
Is a PEL worth opening in 2026?
A PEL opened from 1 January 2026 locks in 2.00% gross for the life of the plan, but interest is taxed, so the net return is roughly 1.40%, below the tax-free Livret A. Its main value today is the attached right to a mortgage loan, not the yield.
Is a 3% boosted livret better than the Livret A?
Only in year one. On €10,000, BforBank's 3.10% boost nets €212.66 after the 31.4% flat tax against €170 on the Livret A, but over two years the Livret A earns €340 and the BforBank livret €294.98 once its rate falls to 1.20% (our calculation, October 2026 rates).
Do I pay tax on interest from Trade Republic, Klarna or Raisin?
Yes, at the 31.4% flat tax in force since 1 January 2026. These foreign providers do not withhold it, so you declare the interest yourself on your annual return, and accounts held abroad, such as Klarna in Sweden or Raisin's partner banks, also go on form 3916.
Do I need a current account to open a Livret A?
No. A Livret A is not linked to a current account and does not require one at the same bank, though you may only hold one Livret A at a time across all banks.
Are Livret A, LDDS, and LEP deposits insured?
Yes, but not through the same scheme as ordinary bank deposits. Livret A, LDDS, and LEP balances carry a separate French state guarantee, distinct from the FGDR deposit guarantee that covers current accounts and other bank deposits up to €100,000.