Good news for savers: since August 1, 2026, the Livret A interest rate has risen to 1.7%, up from 1.5% previously. This 0.2-point increase was decided by the Minister for the Economy, following a proposal by the Governor of the Banque de France, in response to the slight rise in inflation during the first half of 2026. Here is what it means in practical terms for your savings.

Why is the Livret A rate increasing in August 2026?

The Livret A rate is reviewed twice a year — on February 1 and August 1 — using a regulatory formula that takes inflation and money-market rates into account. In mid-2026, the Banque de France observed a slight increase in consumer prices over the first six months, which justifies this upward revision.

This decision, formalized by decree, applies automatically to every Livret A account held in France, regardless of the bank: La Banque Postale, Crédit Mutuel, Caisse d'Épargne, BNP Paribas, Société Générale or any other institution. You do not need to take any action to benefit from it.

How much do you earn with a Livret A at 1.7%?

Livret A interest is calculated according to the half-month rule: deposits made before the 16th of the month earn interest from the 1st of that same month; deposits made after the 16th only start earning interest from the 1st of the following month. Here are the estimated gains for a full year at 1.7%:

  • €1,000 invested for the whole year : about €17 in net interest
  • €5,000 : about €85 in net interest
  • €10,000 : about €170 in net interest
  • Maximum ceiling (€22,950) : about €390 in net interest

One essential point to remember: Livret A interest is completely exempt from income tax and social-security contributions. The figures above are what you actually receive, after all deductions. It is a tax advantage that few risk-free investments can match.

What about the LDDS? And the LEP?

The Livret de développement durable et solidaire (LDDS) is automatically indexed to the Livret A rate, so it also rises to 1.7% on August 1, 2026, with a ceiling of €12,000. If your Livret A is already at its limit, the LDDS is the natural next place for additional cash savings.

For the Livret d'épargne populaire (LEP), which is reserved for households below a certain income threshold, the situation is even more favorable. The calculation formula should have led to a cut to 2.2%, but the government chose to keep the LEP rate at 2.5% to protect the purchasing power of lower-income savers.

If you are eligible for the LEP and have not opened one yet, now is an ideal time: with a rate almost 50% higher than the Livret A, it remains the best risk-free savings product currently available in France.

Is the Livret A still worthwhile with current inflation?

It is a fair question. If inflation in France is around 1.8% to 2% in the first half of 2026, a 1.7% rate means your savings lose a very small amount of purchasing power in real terms. But that is not the primary purpose of the Livret A.

What the Livret A offers — and what no other product matches at the same level of risk — is:

  • A government guarantee covering the entire principal
  • Immediate availability : you can withdraw your money whenever you wish, with no delay or penalty
  • Zero tax on your gains
  • No fees for opening or managing the account

For emergency savings — the equivalent of 3 to 6 months of everyday expenses according to financial advisers' recommendations — the Livret A remains the benchmark solution. Beyond this safety cushion, other investments may be worth considering: euro-denominated life-insurance funds, a PEL home-savings plan, or a PEA for investors with a more dynamic profile.

4 smart moves to optimize your savings in August 2026

A few simple steps can help you make the most of this rate increase:

  • Deposit before the 16th of the month so that your funds start earning interest from September 1. If you have cash available, now is a good time.
  • Check whether you are eligible for the LEP with your bank. The income ceiling is around €21,393 of reference taxable income for a single person (slightly higher for couples). Eligibility is often underestimated.
  • Do not leave cash sitting in a current account : a current account earns nothing. Any surplus can and should be moved to a Livret A or an LDDS.
  • Combine regulated savings products : you can hold a Livret A, an LDDS and an LEP at the same time (if eligible), allowing you to place roughly €47,000 in fully secured, tax-free savings accounts.

Key takeaways

The increase in the Livret A rate to 1.7% in August 2026 is good news for millions of French savers. It does not fully offset inflation, but it confirms the Livret A's central role in a cautious savings strategy. If you have not reached the ceiling yet, now is a good time to add money to the account. And if you want a better return with no investment risk, check urgently whether you qualify for the LEP: at 2.5%, there is no equivalent in France for those who can access it.