Livret A sees seventh September withdrawal

The Livret A, a popular savings account in France, recorded its seventh withdrawal in September 2026, with a net outflow of 1.52 billion euros. This follows a decline in its real yield, which returned to negative territory at -1.7%, influenced by rising inflation and school supply expenses.

Households face financial strain

With the end of the summer holidays and the start of the school year, households are experiencing increased financial pressure. Rising inflation, at 3.4% in September, has made the Livret A less attractive, leading many savers to seek more profitable investment options.

Historical context of September withdrawals

Since 2009, the Livret A has seen seven withdrawals in September, with the most recent in 2025 at -410 million euros. The largest withdrawal occurred in 2015, when the account's interest rate was reduced, leading to a net outflow of 2.38 billion euros.

Average September collections remain low

Over the past ten years (2016–2025), the average September collection for the Livret A has been 355 million euros. The best performance was in September 2022, when the account saw a positive collection of 2.67 billion euros, driven by a rate increase and high inflation.

Energy costs add to financial pressure

In 2026, energy costs have risen sharply, with oil prices exceeding 100 dollars per barrel. This has placed additional strain on lower-income households, many of whom are now forced to use savings to cover current expenses.

Livret A rate increase fails to attract savers

Despite a rate increase to 1.7% in August 2026, the Livret A saw only modest improvements in collections, with 50 million euros in July and 540 million in August. The real yield remains negative, pushing savers toward more lucrative options like fixed deposits and life insurance euro funds.

LDDS mirrors Livret A's decline

The Livret de développement durable et solidaire (LDDS), another popular savings account, also saw a withdrawal of 700 million euros in September. Over the first three quarters of 2026, its collection was negative by 1.61 billion euros.

Fourth quarter could see larger withdrawals

The fourth quarter is traditionally a period of increased withdrawals due to year-end expenses. Analysts predict a withdrawal of around 9 to 10 billion euros for the year, similar to the amounts seen in 2014 and 2015.

Livret A's size remains stable

Despite the withdrawals, the Livret A's total outstanding amount remains at over 440 billion euros, significantly higher than in 2016. This indicates that the account is not at risk of financial instability and continues to support social housing programs.

Future rate hike may improve competitiveness

The Livret A's interest rate is expected to increase to 2.5% on February 1, 2027, in response to rising inflation and European Central Bank rate changes. This could help make the account more attractive to savers.