The interest rate on the Livret A savings account will drop to 1,7% from August 1st.

Economy Minister Roland Lescure announced on Tuesday that the interest rate on the Livret A savings account will rise to 1,7% starting August 1, 2026. This decision follows recommendations from the Bank of France and marks the first increase since early 2023. The rate had been fixed at 1,5% since last February, after reaching a peak of 3% the previous year. This increase in the main savings vehicle for the French comes as inflation has stood at 2,4% since March.

A response to the rebound in inflation

The rebound in inflation since the outbreak of the war in the Middle East at the end of February explains this upward revision. The government is thus adjusting the interest rate on the Livret A savings account to maintain a balance in the face of rising prices. The approximately 55 million holders of this regulated investment will see their savings earn higher returns starting next month.

This 0,2 percentage point increase remains modest but reflects a change in trend after several months of gradual decline. The interest rate on the Livret A savings account had been progressively reduced over the last few quarters to reflect the slowdown in inflation observed at the end of last year. The new economic landscape now necessitates an adjustment to maintain the attractiveness of this tax-free savings account in the face of monetary erosion.