France to Increase Livret A Savings Account Ceiling in February

French Prime Minister Sébastien Lecornu announced on Tuesday, November 3, that the government will increase the deposit ceiling for the Livret A, a popular regulated savings account, effective February 2027. The current limit of 22,950 euros, which has remained unchanged since 2013, will be raised to a range between 25,000 and 30,000 euros. The exact final figure is expected to be determined by Minister of the Economy Roland Lescure in the coming weeks following consultations with banking institutions and the Caisse des Dépôts.

In addition to the increase in the deposit ceiling, the government plans to adjust the account's interest rate, which currently stands at 1.7 percent. Prime Minister Lecornu confirmed that the rate update will occur simultaneously with the ceiling adjustment in February, noting that the rate is expected to rise in response to inflation. This move is part of a broader strategy to mobilize French household savings toward national priorities.

The government intends to utilize these funds to support several key sectors. While the Livret A has historically been used to finance social housing, the administration has expanded its scope to include the construction of new nuclear reactors and a comprehensive plan for adapting public infrastructure to climate change. According to Matignon, the funds will also support the development of electricity and water networks, as well as the renovation of middle and high schools.

The announcement came during a session of questions to the government at the National Assembly, where the Prime Minister was responding to a query from Christophe Naegelen, a deputy representing the LIOT group. Naegelen had previously advocated for the launch of a major national loan to address funding needs. The government's decision to leverage the Livret A is viewed as an effort to utilize a well-known financial tool that provides both liquidity for savers and a stable source of capital for public projects.

Despite the government's push to increase deposits, the Livret A has faced recent challenges. Data published by the Caisse des Dépôts on October 22 indicated that in September, French savers withdrew 1.52 billion euros more than they deposited. This trend has persisted despite a slight increase in the interest rate earlier this year. Some political figures and labor organizations have expressed concerns regarding the government's use of regulated savings for nuclear projects, fearing that such allocations could potentially weaken the funding available for social housing.

For individual savers, the upcoming changes will not require any specific action, though they may monitor their account balances to prepare for the new limits. The Livret A remains a tax-exempt savings product, and interest earned on these accounts is not subject to income tax or social contributions. As the government finalizes the details, the focus remains on balancing the need for public investment with the financial interests of French households.