The Regulated Savings Framework
Regulated savings accounts (livrets réglementés) are a distinctive feature of the French financial system. Unlike ordinary bank savings accounts whose interest rate is freely set by each institution, the rates on regulated accounts are determined by the State following a published calculation formula. The deposits they receive are partially centralised at the Caisse des dépôts et consignations to fund social housing and local infrastructure. In exchange, account holders benefit from three protections unavailable on ordinary accounts: a guaranteed minimum rate updated by ministerial order; full exemption from income tax and social charges on the interest earned; and a specific State guarantee over the balances held, separate from and additional to the ordinary Fonds de Garantie des Dépôts et de Résolution (FGDR) deposit guarantee.
The four accounts covered here — Livret A, LDDS, Livret Jeune and LEP — form the regulated savings tier available to private individuals. They can each be held simultaneously: a single person may hold one Livret A, one LDDS, one Livret Jeune and one LEP at the same time, provided eligibility conditions are met for each.
The deposit guarantee
The Livret A (including the Livret Bleu distributed by Crédit Mutuel), the LDDS, and the LEP benefit from a specific State guarantee, administered by the FGDR on behalf of the State, up to €100,000 per customer per institution (C. mon. fin. Art. L 312-4 s.). This guarantee is independent of — and cumulative with — the ordinary FGDR deposit guarantee of €100,000 per depositor per institution that covers current accounts and ordinary savings.
The fortnightly interest calculation rule
All four regulated accounts calculate interest on a fortnightly (quinzaine civile) basis, not a daily basis. Deposits begin earning interest from the first day of the civil fortnight following the deposit — meaning the 16th of the current month if the deposit is made between the 1st and 15th, or the 1st of the following month if the deposit is made between the 16th and month-end. Withdrawals cease earning interest at the end of the civil fortnight preceding the withdrawal date — meaning the 15th of the current month if the withdrawal is made between the 16th and month-end, or the 30th/31st of the previous month if the withdrawal is made between the 1st and 15th.
Understanding the fortnightly rule allows savers to optimise the timing of deposits and withdrawals to avoid losing interest unnecessarily.
Depositing on 14 March → interest starts from 16 March.
Depositing on 16 March → interest also starts from 16 March — same result.
Depositing on 17 March → interest only starts from 1 April — 15 days lost.
→ Optimal: Make deposits on or before the 15th or on the 1st of the month.
Withdrawal timing:
Withdrawing on 1 March → interest stopped running at 28 February.
Withdrawing on 15 March → interest stopped running at 28 February — same result.
Withdrawing on 16 March → interest stops at 15 March — 15 days gained.
→ Optimal: Delay withdrawals to the 16th of the month or later where possible.
Interest is capitalised annually on 31 December and added to the balance. In the event of account closure mid-year, interest is credited on the day of closure.
The Livret A (and Livret Bleu)
Who can open one
Any natural person may open a Livret A regardless of age, nationality, or country of residence (C. mon. fin. Art. L 221-1 and R 221-1). Minors may open a Livret A alone, but until they reach 16 may only withdraw funds with parental consent; from 16 onwards, withdrawals are possible without parental agreement unless the parents have formally notified the bank of their opposition by registered letter. Each person may hold only one Livret A (C. mon. fin. Art. L 221-3). Opening multiple Livrets A is a fiscal infraction: the interest on the excess account becomes taxable and a penalty equal to 2% of the balance on the excess account applies (CGI Art. 1739 A). Joint accounts are not permitted for the Livret A, but the account holder may grant a power of attorney to their spouse. The Livret Bleu distributed by Crédit Mutuel follows the same legal regime as the Livret A in all respects.
Deposit cap and permitted operations
The deposit ceiling is €22,950 (C. mon. fin. Art. R 221-2). No deposit may take the balance above this ceiling, but interest capitalisation may push the balance above it — once it does, no further deposits are permitted until the balance drops back below the ceiling. Permitted operations are limited to deposits (cash, cheque, or incoming bank transfer) and withdrawals to the account holder's current account. Standing orders from a current account to the Livret A are allowed. No means of payment (cheque book, payment card) is attached to a Livret A. The minimum transaction size for cash deposits and withdrawals is €10 (€1.50 at La Banque Postale). La Banque Postale must additionally permit direct crediting of social security and public pension payments and direct debiting of income tax, local taxes, utility bills, and since March 2022, telecoms invoices.
Interest rate and the rate-setting formula
The Livret A rate is set at 3% per annum since 1 February 2023 (Arrêté ECOT2301445A du 27-1-2023). The rate is reviewed twice a year by the Banque de France, on 15 January and 15 July, for potential revision on 1 February and 1 August respectively. The formula: the Livret A rate equals the average of French inflation and the six-month average of the €STR short-term euro rate, with a floor of 0.5%. The Minister of Finance retains the power to override the formula in exceptional circumstances or to preserve the real purchasing power of savers.
Tax treatment
Interest on a Livret A (and the Livret Bleu) is wholly exempt from income tax and from all social charges (C. mon. fin. Art. L 221-1 and following). No withholding at source applies. Nothing needs to be declared.
The LDDS (Livret de Développement Durable et Solidaire)
Who can open one
The LDDS is available exclusively to individuals with their tax domicile in France (C. mon. fin. Art. L 221-27). Each taxpayer may hold only one LDDS; married couples and PACS partners under joint taxation may each hold one, for a maximum of two per tax household. The LDDS cannot be opened in the name of a dependant — a minor child or a major child still attached to their parents' tax household. Although restricted to French tax residents, the LDDS imposes no nationality condition: any person resident and taxed in France may open one regardless of their nationality.
Deposit cap and permitted operations
The deposit ceiling is €12,000 (C. mon. fin. Art. D 221-103). As with the Livret A, interest capitalisation may carry the balance above the ceiling, at which point further deposits are suspended. Deposits and withdrawals are entirely free, can be made at any time, and are unlimited in frequency. Standing orders from a current account to the LDDS are allowed; withdrawals from the LDDS to the current account require an express instruction each time. Each year, the institution distributing the LDDS must offer each account holder the possibility of directing part of the balance, through the bank and without charge, to fund social and solidarity economy organisations (C. mon. fin. Art. L 221-27 and D 221-105). This offer is a statutory annual requirement; the account holder is not obliged to act on it.
Interest rate and tax treatment
The LDDS rate is permanently aligned with the Livret A rate: currently 3% per annum since 1 February 2023, determined by the same formula and reviewed on the same calendar. Interest is calculated on the same fortnightly basis as the Livret A and capitalised on 31 December each year. Interest on a LDDS is wholly exempt from income tax and from all social charges (C. mon. fin. Art. L 221-27).
The Livret Jeune
Who can open one
The Livret Jeune is reserved for young people aged between 12 and 25 — from their 12th to their 25th birthday — who habitually reside in France (C. mon. fin. Art. L 221-24). Each eligible person may hold only one Livret Jeune. No fees of any kind — for opening, management, or closure — may be charged (C. mon. fin. Art. R 221-97).
Deposit cap and age-based withdrawal rules
The deposit ceiling is €1,600, excluding capitalised interest (C. mon. fin. Art. D 221-85). The minimum opening deposit and minimum transaction amount are both €10; the balance may never fall below €10. Only the account holder may make deposits or withdrawals. Withdrawals are subject to age-based rules: before 16, the account holder requires parental consent for each withdrawal; between 16 and 18, withdrawals are possible without parental approval unless the parents have formally opposed this with the bank; from 18 onwards, all operations are fully autonomous.
Interest rate and automatic closure
Each bank sets its own Livret Jeune rate freely, subject to a statutory minimum: the rate may not be lower than the Livret A rate (currently 3%). Interest is calculated on the same fortnightly basis and capitalised annually on 31 December. The holder must request closure of their Livret Jeune no later than 31 December of the year of their 25th birthday (C. mon. fin. Art. R 221-79) — in practice, the bank will close the account automatically on that date. Multiple holding of Livret Jeune accounts results in loss of all interest on the infringing account going back up to three years from the date the infraction is identified (C. mon. fin. Art. L 221-26). Interest on a Livret Jeune is wholly exempt from income tax and from all social charges.
The LEP (Livret d'Épargne Populaire)
Who can open one: the income test
The LEP is the most selective of the four accounts: it is reserved for individuals with their tax domicile in France whose revenu fiscal de référence (RFR) does not exceed the income thresholds set by reference to CGI Art. 1417-I, multiplied by a coefficient of 1.8 (C. mon. fin. Art. L 221-15 and R 221-33). Eligibility is assessed against the RFR from the year before last or the previous year (the more recent of the two that shows eligibility is used). As a reference point, the thresholds for 2023 openings required an RFR not exceeding approximately €21,393 for a single person and approximately €32,820 for a couple. Each eligible taxpayer may hold one LEP; a married couple or PACS partners under joint taxation may each hold one, for a maximum of two per household. Dependants may not hold a LEP.
Ongoing eligibility is verified annually: a holder whose RFR exceeds the threshold for two consecutive years loses the right to retain their LEP and must close it. The bank closes the account automatically on 30 April of the second excess year if the holder has not already done so (C. mon. fin. Art. R 221-38). Eligibility may be re-established in subsequent years if income falls back within the threshold.
Deposit cap and permitted operations
The deposit ceiling is €7,700 (C. mon. fin. Art. D 221-46). The minimum initial deposit is €30 (C. mon. fin. Art. R 221-41). Interest capitalisation may carry the balance above the ceiling; no further deposits are then permitted until the balance falls back below it. Each withdrawal from the LEP to the current account requires an express instruction from the holder (C. mon. fin. Art. R 221-44). Withdrawals may be made at any time up to the full available balance; the balance may not become negative.
Interest rate: the highest in the series
The LEP rate is set as the higher of two values: the Livret A rate plus 0.5 percentage points, or the rate of French inflation. Since 1 February 2023, the LEP rate has been 6.1% per annum, reflecting the inflation-driven floor being higher than the Livret A rate (3%) plus 0.5% (Arrêté ECOT2301445A du 27-1-2023). This makes the LEP by far the highest-yielding regulated savings account and one of the most competitive savings products available to eligible savers in France.
Portability and tax treatment
Unlike the LDDS and Livret Jeune, a LEP may be transferred from one bank to another without any loss of remuneration (C. mon. fin. Art. R 221-34 s.). The transfer request is made to the institution holding the account and takes effect at the end of the calendar month in which the request is made. This portability distinguishes the LEP from the other regulated accounts in the series. Interest on a LEP is wholly exempt from income tax and from all social charges (C. mon. fin. Art. L 221-16 s.).
Comparison Table
| Feature | Livret A | LDDS | Livret Jeune | LEP |
|---|---|---|---|---|
| Eligibility | Any natural person; any age, nationality or residence | Tax domicile in France; adults only; no dependants | Age 12–25; French resident | Tax domicile in France; adults; RFR below statutory threshold; no dependants |
| Max. per household | One per person (children included) | Two per household (one per taxpayer, one per spouse/PACS) | One per person | Two per household (one per taxpayer, one per spouse/PACS) |
| Deposit ceiling | €22,950 | €12,000 | €1,600 | €7,700 |
| Minimum deposit | €10 (€1.50 at La Banque Postale) | €10 if bank applies minimum | €10 opening; €10 per transaction | €30 opening deposit |
| Interest rate (from February 2023) | 3% p.a. | 3% p.a. (= Livret A) | ≥ Livret A rate (bank-set; min. 3%) | 6.1% p.a. (higher of Livret A + 0.5% or inflation) |
| Interest calculation | Fortnightly; capitalised 31 Dec | Fortnightly; capitalised 31 Dec | Fortnightly; capitalised 31 Dec | Fortnightly; capitalised 31 Dec |
| Joint account | Not permitted (proxy to spouse allowed) | Permitted, one per household only | Not applicable (personal product) | Not permitted |
| Transfer to another bank | Close and reopen only (free) | Close and reopen only | Close and reopen only | Yes — portable; no loss of remuneration |
| Automatic closure | No (open indefinitely) | No automatic closure | 31 December of year of 25th birthday | If income exceeds threshold 2 consecutive years; if balance nil for full year |
| Tax and social charges | Fully exempt | Fully exempt | Fully exempt | Fully exempt |
| State deposit guarantee | Yes — €100,000 per client per institution (independent of FGDR) | Yes — same | No specific State guarantee (ordinary FGDR only) | Yes — same as Livret A |
Inactive Accounts and Transfer to the Caisse des Dépôts
A savings account (including a regulated livret) is considered inactive if it has recorded no transactions — other than interest credits and fee debits — for five years and its holder has not made contact with the institution in any form during that period (C. mon. fin. Art. L 312-19 and L 312-20). For a deceased holder, the threshold is 12 months from the date of death without any beneficiary coming forward.
After a further dormancy period — ten years from the last transaction, last manifestation of the holder, or end of the indisponibilité period, whichever is most recent — the balance is transferred to the Caisse des dépôts et consignations. For accounts of deceased holders, the transfer occurs three years after death. Once transferred, the funds are held by the CDC for the benefit of the holder or their heirs for 20 years (27 years for deceased-holder accounts). Holders and heirs may search for transferred funds and initiate a restitution request at ciclade.caissedesdepots.fr. If no claim is made within the total 30-year dormancy period, the funds pass definitively to the State.
There is no prohibition on holding all four regulated accounts simultaneously, provided eligibility conditions are met. A French tax-resident adult whose income is below the LEP threshold may hold a Livret A (€22,950 ceiling), a LDDS (€12,000 ceiling), and a LEP (€7,700 ceiling) at the same time — a combined ceiling of €42,650 across three fully tax-exempt, State-guaranteed accounts, plus a Livret Jeune if aged 12 to 25. These accounts may also be held alongside PEA, PER, and ordinary savings accounts without restriction.
The prohibition rules are: one Livret A per person; one LDDS per taxpayer (max two per household); one LEP per taxpayer (max two per household); one Livret Jeune per person. A person holding both a Livret A and a LDDS is not in breach of any rule; a person holding two Livrets A is.
Whether you are setting up accounts for a move to France, managing savings as an expatriate, or advising on French household asset allocation, our guides cover the full range of French regulated savings and investment products.
Book a ConsultationThis article is provided for general information and educational purposes only. It does not constitute financial or tax advice. Interest rates cited (3% for the Livret A and LDDS; 6.1% for the LEP) reflect the rates in force since 1 February 2023 as established by ministerial order; rates are reviewed periodically and may have changed since publication. Income thresholds for LEP eligibility are updated annually by reference to CGI Art. 1417-I; the figures cited relate to 2023 and should be verified for current years.
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Key Legal References
Livret A: open to all natural persons regardless of age, nationality or residence; one per person; minors may open alone; parental consent required for under-16 withdrawals; no joint accounts; proxy to spouse permitted; Livret Bleu follows identical regime
Livret A deposit ceiling: €22,950; minimum cash transaction €10 (€1.50 at La Banque Postale); interest capitalised 31 December; bank must verify prior holding with tax authority before opening
Multiple Livret A infraction: interest on excess account becomes taxable; penalty of 2% of excess account balance applies (not recovered if below €50)
Livret A rate-setting formula: average of French inflation and 6-month average of €STR rate, floor 0.5%; reviewed 15 January and 15 July by Banque de France; rate fixed at 3% from 1 February 2023
LDDS: French tax domicile required; one per taxpayer; maximum two per household under joint taxation; no dependants; no nationality condition; annual solidarity economy donation offer required from distributing institution
Livret Jeune: ages 12 to 25; French residents; one per person; ceiling €1,600 excluding capitalised interest; minimum €10 opening deposit and per transaction; balance never below €10; parental consent rules by age; no fees of any kind; automatic closure 31 December of year of 25th birthday; multiple holding: loss of interest up to 3 years back
Livret Jeune rate: freely set by each bank; minimum = Livret A rate (currently 3% p.a.)
LEP: French tax domicile required; income test: RFR ≤ statutory threshold (CGI Art. 1417-I × 1.8); one per taxpayer; maximum two per household; no dependants; ceiling €7,700; minimum opening €30; each withdrawal requires express instruction; compulsory closure by 30 April if income exceeds threshold 2 consecutive years; LEP uniquely portable to another bank without loss of remuneration
LEP rate: higher of (Livret A rate + 0.5 percentage points) or French inflation rate; rate fixed at 6.1% from 1 February 2023
State deposit guarantee: Livret A, LDDS, and LEP benefit from a specific State guarantee of €100,000 per client per institution, administered by FGDR on behalf of the State; independent of and cumulative with ordinary FGDR deposit guarantee of €100,000
Inactive accounts: inactive after 5 years without transactions or holder contact; balance transferred to Caisse des dépôts after further 10 years of inactivity (3 years for deceased holders); holder/heirs may claim restitution at ciclade.caissedesdepots.fr for up to 20 years after transfer (27 years for deceased); unclaimed funds pass to State after 30-year total dormancy
