Livret A Rate Set to Rise to 1.8% in August 2026

France’s Livret A savings account rate will likely increase to around 1.8% in August 2026, up from the current 1.5% set in February. The Caisse des Dépôts director Olivier Sichel confirmed on June 11 that rising inflation at 2.4% is pushing the rate higher through a standard formula. The Finance Minister will make the final decision, but the move follows an automatic calculation method.

How the Rate Gets Calculated

The Livret A rate follows a fixed formula set by law. It takes the average of inflation and short-term interest rates. Sichel explained on Public Sénat that this formula currently points to around 1.8%, driven by France’s inflation rate of 2.4% in May 2026. Energy prices linked to Middle East tensions pushed inflation higher. The calculation is automatic, not a discretionary decision by the Caisse des Dépôts.

When the Change Takes Effect

The rate revision typically happens twice yearly on February 1 and August 1. The decision comes in mid-July after the Finance Minister consults the Bank of France governor. Savers should expect the new 1.8% rate to apply from August 1, 2026. The current 1.5% rate has been in place since February 1, 2026.

Why This Matters for Savers

The 0.3 percentage point increase means savers earn more on their deposits, though the new rate remains below the 2.4% inflation rate. A 10,000 euro deposit at 1.8% generates 180 euros annually, compared to 150 euros at 1.5%. However, the real purchasing power of savings still erodes because inflation outpaces the return. France’s financial savings reached 6,590.5 billion euros at end-2025, reflecting high household caution.

Final Thoughts

The Livret A rate increase to 1.8% offers modest relief to savers, but the return still lags inflation. For French households holding record savings levels, the higher rate provides slightly better protection against purchasing power loss.

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