It is a paradox: the Livret A charge charge is often criticized for its relative weak spot. On the similar time, it stays a fascinating funding of the French, held via 8 out of 10 of them. Possibly as a result of it isn’t as regards to monetary returns. And that this greater than two-hundred-year-old booklet fulfills elementary purposes within the financial system, with a complete quantity of… 450 billion euros.
Livret A used to be born on Might 22, 1818 in Paris, with the introduction of the primary financial savings financial institution. Since then it’s been the most well liked financial savings manufactured from the French, with virtually 57 million (83% of the inhabitants) proudly owning it nowadays. In the beginning of 2026, the overall quantity used to be with reference to 450 billion euros.
Unmatched reputation
The recognition of Livret A will also be defined via the simplicity of opening, easiest liquidity, absence of taxation and menace.
Each Frenchman, without reference to age, can open a Livret A (and just one!) within the financial institution of his selection with an preliminary capital of 10 euros (1.50 euros at Poštanska banka), i.e. the quantity of the minimal stability. The ceiling is ready at 22,950 euros. Livret A has a quasi “twin”, the Sustainable and Solidary Construction Booklet (LDDS) which follows the similar laws, however with a most quantity of 12,000 euros. Booklet A may be to be had to positive felony entities (associations, associations of co-owners and HLM organizations), however to not firms.
The price range are to be had with out understand, in contrast to different financial savings automobiles, corresponding to lifestyles insurance coverage, which means that that this can be a very liquid funding. The minimal withdrawal is 10 euros (1.50 euros at Poštanska banka). Money will also be withdrawn without delay from the counter or from an ATM.
No taxes and little menace
The pastime won is exempt from source of revenue tax and social safety contributions. In different phrases, the nominal go back is exactly equivalent to the gross go back. The rate of interest paid to the saver is fastened between two semesters. Each and every proprietor can then calculate the pastime quantity (calculated each and every two weeks and capitalized on December 31 every yr).
In spite of everything, Livret A is a risk-free asset, for the reason that invested financial savings are secure via the Deposit Ensure and Restoration Fund in case of financial institution chapter.
Those benefits make Livret A the most well liked mainstay for family precautionary financial savings, i.e. a security cushion that may be right away mobilized to maintain an unexpected tournament. For lots of French folks, that is the one supply of financial savings. Therefore its distinctive personality. Clearly, those plain qualities are counterbalanced via low efficiency that may be the topic of controversy.
Repetitive faux debate
The rate of interest for Livret A is made up our minds via the state, which refers back to the calculation performed two times a yr via the Banque de France. From 2021, the speed is the semi-annual reasonable of the inflation charge (apart from tobacco costs) and momentary interbank charges (€STR), rounded to the closest 10th of some extent.
This method signifies that the minimal rate of interest for Livret A is 0.5%. It additionally signifies that in positive sessions the actual go back (nominal charge minus inflation) of Livret A is unfavourable: this means a lack of buying energy of the cash thus stored. This used to be particularly the case all over the post-Covid duration (see chart).
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From 1 February 2026, the nominal charge is ready at 1.5% (in comparison to 1.7% in the past), implying an actual yield of round 0.8%. From a yield viewpoint on my own, the Livret A is due to this fact now not essentially the most fascinating product. Via comparability, lifestyles insurance coverage contracts in euros returned a mean of two.65 % in 2025.
In the similar duration, the CAC 40 greater via greater than 10%. Let’s take note, alternatively, that conversely, the nominal yield on call for deposits is the same as 0, so it’s at all times not up to that of Livret A.
A counterpart
The low yield of Livret A is due to this fact just a counterpart of its benefits. Via maintaining completely secure property, savers will have to settle for a low actual go back. So far as funds are involved, this isn’t a wonder. A better go back essentially manner taking the next menace, as identified via the Nobel Prize-winning economist William Sharp. Livret A is then the fitting enhance for depositors who display sturdy menace aversion.
The low yield must now not difficult to understand the commercial and social function Livret A performs for the French financial system during the Caisse des Depots and banks.
The function of the Caisse des Depots
About 450 billion euros positioned in Livret A isn’t slumbering peacefully. They supply a long-term spherical of mortgage financing that will have to on the similar time stay liquid to fulfill withdrawal necessities. Thus, the announcement of a charge minimize on February 1 used to be accompanied via the withdrawal of one.87 billion euros in January 2026.
Virtually 65% of the price range are centralized within the Caisse des Depots, which converts liquid deposits into long-term financing, specifically via loans for social housing and concrete coverage. Livret A is due to this fact now not a closed fund. This is a machine for remodeling liquid deposits into long-term financing, topic to liquidity constraints.
For the Caisse des Depots and its Banque des Territoires, the stakes are top as financial savings fund mortgage shares achieve 202 billion euros in 2024, together with 180 billion devoted to social housing and concrete insurance policies. Just for the yr 2024, 28.5 billion euros of loans had been licensed.
Useful resource for structuring
Livret A is due to this fact a structural useful resource for financing social housing and long-term territorial investments. Particularly, those price range duvet the development and renovation of social housing, but additionally pupil dormitories and, in positive circumstances, scientific and social amenities, corresponding to nursing properties, to enhance the ageing French inhabitants.
France Televisions, 2026.
However the impact of Livret A does now not prevent within the public sphere. The non-centralized phase, i.e. 35% of remarkable quantities, stays within the stability sheet of the distributor’s banks. This 2d, extra discrete facet signifies that regulated financial savings additionally give a contribution to the financing of the financial system.
Livret A and financial institution mortgage
The non-centralized phase stays at the legal responsibility facet of banks’ stability sheets and is a supply of financing. The regulation mandates that those price range be directed in opposition to the financing of small and medium-sized enterprises (SMEs), the power transition and the social and unity financial system, with the duty of public reporting.
The Banque de France estimates the rest quantity retained at the stability sheet on the finish of 2024 at 245.6 billion euros. For a similar yr, new SME loans reached EUR 116.7 billion, and general exceptional SME loans reached EUR 568.5 billion. So it is arrows consistent with envelope, now not a euro-for-euro “pipe”. If truth be told, the non-centralized phase feeds the envelope of assets at the financial institution’s stability sheet, and the allocation is verified via aggregated quantities, now not via euro-for-euro correspondence between deposits and loans.
Booklet A thus fulfills a twin serve as. At the one hand, it gives families easy and secure precautionary financial savings. However, it feeds the cycle of collective financing, from social housing to financial institution loans for SMEs. This ambivalence explains its particular position.
