France Confirms Livret A Rate Reduction to 2.4% Starting February 1

The decision marks the first rate cut since 2020, reflecting lower inflation and aiming to support social housing financing.

The French government has approved reducing the Livret A savings rate from 3% to 2.4%, effective February 1, 2025.
The Livret d'épargne populaire (LEP) rate will also decrease from 4% to 3.5%, following a proposal by the Banque de France.
The rate adjustments align with declining inflation, which averaged 2% in 2024, according to INSEE data.
The Banque de France emphasized that the changes will bolster funding for social housing and local government projects.
The Livret A, held by 57 million French citizens, last experienced a rate cut in 2020, when it dropped to 0.5%.