Livret A offers 1.7% tax-free yield

The Livret A, a popular French savings account, now offers a yield of 1.7%, fully tax-exempt. This rate has been in effect since August 1st. The Livret de développement durable et solidaire (LDDS) has not seen any changes to its rate, while the Livret d'épargne populaire (LEP) offers a higher 2.5% yield, also tax-free, for those who meet income conditions.

LEP rate expected to rise in 2027

A new increase in the LEP rate is expected by February 1st, 2027, potentially reaching up to 2.6%. If this happens, the LEP could again approach a 3% yield, similar to its previous levels. This would be the first rate change since 2021 for the LEP.

PEL yields remain at 2% gross

The Plan épargne logement (PEL), a savings plan tied to housing, currently guarantees a gross yield of 2% for its entire duration. However, after applying the flat tax of 30%, the effective yield is 1.4%. This tax rate remains unchanged despite increases in the CSG (social contribution on income), as housing savings are exempt from this increase.

PEL rate changes affect new accounts only

The change in PEL rates only applies to new accounts opened after March 1st, 2011. Older accounts, such as those opened around ten years ago, still yield 2.5% gross. These accounts have a 15-year lifespan, so many are nearing their expiration dates. The next rate change is expected on January 1st, 2027.

CEL yield at 1.25% before taxes

The Compte épargne logement (CEL), another housing-related savings account, currently offers a yield of 1.25% before taxes. This rate is set to change again in February 2027, following the same schedule as the Livret A, which updates its rate every six months.

Ordinary savings accounts yield less

According to the Bank of France, ordinary savings accounts—those not regulated like the Livret A or PEL—yield an average of 0.75% gross. Examples include the Livret B of the Caisse d'Epargne and the Compte sur livret of La Banque Postale. These rates are significantly lower than those of regulated accounts.

Super-books offer higher rates through promotions

Super-books, promoted by online banks and fintechs, offer higher yields through temporary promotions. In late October 2026, these accounts had an average base rate of 1.72% gross, with some reaching up to 5.25% before taxes. However, these boosted rates are only valid for a limited time, typically around 4 months, after which they drop significantly.

Savings rates show slight improvement

The average rates for savings accounts have shown a slight increase over the past three months. In August 2026, bank books averaged 0.33% and super-books 1.62%. By October 2026, bank books had stabilized at 0.34%, while super-books reached 1.72%.

Flat tax reduces effective yields

All these savings accounts are subject to the flat tax, which rose to 31.4% in 2026. For example, a gross rate of 0.50% drops to 0.34% after tax. Boosted rates, like 5% at Revolut, also see a significant reduction, coming down to 3.43% after all deductions.

Term accounts offer higher guaranteed returns

Term accounts, which guarantee a fixed rate for a set period, currently offer higher returns. According to the Bank of France, two-year term accounts yield an average of 2.29%, while those with longer terms average 2.51%. New five-year accounts can offer up to 3.35% before taxes, which drops to 2.3% after the flat tax.

Euro funds show strong returns in 2025

Euro funds, which invest in a mix of assets, had an average yield of 2.63% in 2025, according to the Autorité de contrôle prudentiel et de résolution (ACPR). The best performers reached up to 3.75% before social deductions. These rates are expected to improve slightly in 2026, with an estimated average of 2.9%.

Inflation affects real returns

Inflation remains a key factor in assessing the real value of savings. In October 2026, monthly inflation was 3.4%, while the annual rate was estimated at 2.1%. To preserve purchasing power, savers need a net yield of at least 2.1%. This means that any savings account with a yield below this threshold will lose value in real terms.