Overview

• France’s Ministry of Economy and the Banque de France set the Livret A and LDDS rate at 1.7% starting August 1 under a statutory formula reviewed every six months.
• This marks the second reduction in 2025 and the most substantial single cut since 2009, driven by slower consumer inflation and falling interbank rates.
• The Livret d’épargne populaire rate for modest-income households receives a government ‘coup de pouce’, rising to 2.7% from August 1 despite a lower formula-based result.
• Over €600 billion in tax-exempt household savings in these accounts finance social housing, local government and green transition projects, with 40.5% routed to banks and 59.5% managed by the Caisse des dépôts.
• Authorities argue the rate will still outpace inflation and help lower borrowing costs for social housing providers, but critics warn of reduced income for middle-class savers.