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3w ago

French Savers Eye Higher-Yield Options Ahead of Livret A Rate Cut

Record inflows in May highlight savers’ push to lock in 2.4% yields ahead of an expected August rate cut set by the Banque de France in mid-July.

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Le Livret A, boudé par les épargnants depuis la baisse de son taux en début d'année, a retrouvé des couleurs en mai, avant un nouveau recul très probable de son rendement cet été
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Overview

  • Net deposits into Livret A and LDDS accounts reached 1.88 billion euros in May, the strongest monthly inflow of 2025 according to the Caisse des dépôts.
  • The Livret A rate, reduced from 3% to 2.4% on February 1, is projected to fall further to between 1.5% and 1.7% from August 1 after a mid-July calculation by the Banque de France.
  • Household cash cushions remain robust with record balances of 445.3 billion euros in Livret A and 163.3 billion euros in LDDS accounts at the end of May.
  • Anticipating lower returns, many savers are shifting to structured products targeting up to 6% annual yield and boosted euro funds within life insurance contracts.
  • The Livret d’épargne populaire could see its rate rise to around 2.5% for modest-income households on August 1, though that potential adjustment remains unconfirmed.