French savers withdraw more than they deposit

French savers withdrew 1.52 billion euros more than they deposited into their Livret A accounts in September, despite a slight increase in the interest rate to 1.7%, according to the Caisse des dépôts (CDC).

Related savings product also loses money

The Livret de développement durable et solidaire (LDDS), a related savings product, saw a decline of about 700 million euros in September, continuing a trend that began in early 2023 when interest rates started to fall.

Interest rates have been declining since 2023

The interest rate for the Livret A reached a floor of 1.5% at the start of 2026, and a revaluation to 1.7% in July led to only a minor rebound in deposits during the summer, according to experts.

Savings accounts see record withdrawals

Investment in regulated savings accounts has been at its lowest level in nearly 20 years, with withdrawals exceeding deposits by 5.93 billion euros in the first half of 2026, the worst performance since 2009.

Only 2015 had a negative balance before

Philippe Crevel, director of the Cercle de l'Épargne, noted that only 2015 had a negative balance for the first half of the year, with withdrawals exceeding deposits by 2.45 billion euros.

Inflation affects real returns

Taking inflation into account, the rate of the Livret A could rise to 2.60% in 2027, but currently, its returns are below the inflation rate, making it less attractive compared to other savings products.

Competition from other savings products

Life insurance euro funds offer an average return of 2.63%, though this rate is gross and not net, unlike the Livret A. Taxation can reduce the returns of the euro funds by nearly a third, making them less appealing to some savers.

Savers face pressure from inflation

Economists at BPCE expect the rate of the Livret A to increase significantly at the beginning of next year due to the return of inflation, which is included in its calculation formula, potentially reaching 2.60%.

Total savings in accounts remain stable

At the end of September, French savers had accumulated 606.7 billion euros in their Livret A and LDDS accounts, an amount that has remained stable over the past year.

LEP sees record closures

The Livret d'épargne populaire (LEP), which offers 2.5% interest but is only available to those meeting income criteria, saw its outstanding amount decrease by 3.03 billion euros in September, an unprecedented figure for the month.