Livret A Interest Rate to Drop to 2.5% Starting February 1

The reduction, the first in five years, reflects falling inflation and will affect millions of French savers.

The Livret A interest rate, currently at 3%, is expected to decrease to approximately 2.5% on February 1, as confirmed by Economy Minister Eric Lombard.
This adjustment follows a significant drop in inflation, which fell to 1.3% in November 2024, compared to 3.5% a year earlier.
The new rate will reduce annual earnings for savers, with an average account holder losing around €32 in interest and those at the account cap losing up to €106 annually.
The formula used to calculate the Livret A rate is tied to inflation and interbank exchange rates, with the final decision pending input from the Bank of France later this month.
Further rate reductions may occur in 2025, with experts suggesting the rate could fall to 2.25% by August if inflation continues to decline.