France reduces the interest rate on savings accounts to 1.7%, amid a decline in inflation

19 hours ago

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Paris on August 1/WAM/The French government announced today, the reduction of the interest rate at the expense of savings known to the French as “Leveri” to 1.7%, after it was stable at 2.4% since February 2023.

The savings account “Levre A” is one of the most prominent savings tools for French families, and more than 55 million people benefit from it in the country, and the assets deposited in it exceeded 600 billion euros during the first half of 2025, which makes it one of the main pillars of national savings, as well as one of the vital financial resources to finance social housing projects in France, through the General Deposit Fund.

The French Ministry of Economy stated that the decision “reflects the decline in the rate of inflation to less than 2%, which justifies a review rate of interest in line with the organizational formula that takes into account market indicators and the directions of the European Central Bank.”

The ministry added that this reduction “also contributes to reducing the cost of financing directed at municipalities and bodies concerned with building social housing, which supports public policies in the field of sustainable housing.”

Mary Laurent, a spokesperson for the UFC-que Choisir Association for Consumer Protection, said that the decision “directly strikes a wide category of low-income savers who depend on the savings account as a safe haven.”

She added: “Although it remains a tax account of taxes, the real return becomes negative when inflation is close to 2% or higher, which loses saving its value in the medium term.”

It is expected that the interest rate will be re -evaluated at the expense of savings at the beginning of February 2026, unless the national or European economy witnesses financial shocks or a sudden rise in inflation rates in the coming months.

Meanwhile, the famous “Levre A” savings account remains an attractive savings tool thanks to its elasticity, the ease of opening it, and the absence of any tax imposed on its returns, even if its attractiveness in terms of pure profitability declines.

Ma/Z/Z