Decrease In The Livret A Rate: The Bank Of France Recommends A Simple And Profitable Solution

From August 1, 2025, the Livret A rate will plunge to 1.7%, penalizing the 58 million French people who place their savings there. A strategic but unpopular decision, which reopens the debate on access to fair and efficient savings. In response, the Banque de France is reviving a long underutilized solution: the Livret d’Épargne Populaire. In this battle of returns, the fault lines between security and performance are being redrawn.

The Fall of Livret A: A Technical Decision with Massive Consequences

The decrease of the Livret A rate to 1.7% as of August 1^st, 2025, confirmed Wednesday, July 16 by the CEO of Caisse des Dépôts, Éric Lombard, marks a turning point for millions of savers.

The information was confirmed within a strictly regulatory framework, based on the legal indexation formula combining inflation and monetary rates. Recall that last January, the same product still showed a yield of 3%, nearly halving in just a few months.

While monetary authorities invoke the logic of the system, “we strictly apply the formula provided by law”, stated the Banque de France, the concrete consequences are immediate for 83% of French holders of a Livret A.

This drop in yield comes as inflation slows significantly. According to data published by the Banque de France, inflation in the first half of 2025 stands at 0.9%, making the new Livret A rate a product with an almost zero real yield. It should also be noted that:

• The next rate adjustment will not occur before February 1^st, 2026, extending this period of low remuneration;

• The Livret A remains capped at €22,950, but this does not compensate for its reduced yield;

• This decrease weakens the product’s attractiveness, especially compared to competing banking solutions;

• For modest savers who use this booklet as their main savings tool, the loss of income is significant.

In this context, the call made by the Banque de France in favor of the Livret d’Épargne Populaire takes on full meaning. However, this alternative is not as widespread as it could be, despite its tangible benefits.

The LEP: The Designated Alternative, but Still Marginalized

During a press conference held Thursday, July 17, François Villeroy de Galhau, governor of the Banque de France, reminded that the LEP is “the most advantageous regulated savings product today”.

Both tax-exempt, secure, liquid, and especially displaying a rate of 2.7% until February 1^st, 2026, this account checks many boxes in terms of capital protection. Yet, despite clear eligibility conditions, an annual income below €22,823 for a single person or €35,012 for a couple, it remains massively underused. 12 million LEPs are currently open, whereas 19 million French people would meet both the income conditions and have the capacity to save.

The Banque de France admits that “much progress has been made”, notably between 2021 and 2024 with an increase of 5 million new LEPs opened, but this remains insufficient. The institution now warns about the 7 million eligible French who have still not opened this product, even though they sometimes already hold a Livret A.

The lower deposit ceiling, €10,000 versus €22,950 for the Livret A, does not justify this disaffection. In reality, it is more psychological factors, gaps in banking information, or even a lack of proactivity from the banks themselves that slow this transition to a more favorable account.

Beyond the LEP, other options are open to savers looking to diversify their portfolio in a context of declining rates. Cryptocurrencies, especially bitcoin, appear to some as a potential solution for preserving value, or even long-term returns. However, this type of investment requires a thorough understanding of the mechanisms, volatility risks, as well as preservation and tax issues. It is not a universal alternative, but a lever that can be considered with caution, provided its foundations are well studied before any commitment decision.

Beyond the immediate arbitration between two regulated products, this situation raises questions about how financial information is disseminated and the fairness of access to performing savings. The Banque de France seems willing to accelerate in this area, notably by publicly recalling the real return of the LEP, nearly three times higher than inflation. However, the impact will remain limited as long as banks, advisors and simulation tools do not fully integrate this solution into their recommendations to eligible households.