The Livret A rate Athis benchmark for savings in France will soon be relevant. From August 1, 2025he will go from 2.4 % at around 1.7 %. This modification happens that inflation, which had been rather high, has slowed significantly. For the French, this may change the way of managing their savings and influencing their financial choices.
The economic situation and its reasons
The reduction in the rate of the booklet A largely results from recent changes in the French economy. In 2023, an inflation peak had increased the rates of savings booklets at levels never seen. But from the beginning of 2025, inflation was clearly slowed down, increasing by only 0.8 % one March. In addition, inflation outside tobacco has stabilized to 0.7 % over one year. This drop is justified by a favorable economic situation and a prudent management of monetary policies by the Banque de France and INSEE.
Short -term interest rates also play their role. The € STR indicator (Euro Short-Term Rate) illustrates this downward trend, which directly influences decisions related to regulated savings products.
What it changes for savers
The booklet has, considered a safe bet for French savers, could lose its popularity with this new lower yield. Suddenly, everyone could be tempted to explore other solutions such as real estate or financial investments with a little more risks but which could report more.
In addition, the Popular savings book (LEP) will also be affected by a drop in rate. Currently at 3,5 %it should come down to about 2,2 % – or even up to 1 % if inflation remains very moderate. With its 12,5 millions Holders who will see their remuneration fall by 2.5 points, it is important to recall that the rate of the LEP is indexed to the price evolution and is revised twice a year.
Economic scenarios and adjustment tracks
This change marks a new stage in the world of savings in France. Historically, regulated booklets were used to counter inflation and support purchasing power. The drop in rates could strengthen pressure on moderate costs in the French economy and bring the government to review its strategies to find the right balance between the expectations of the French and the management of public finances.
According to Moneyvox, several scenarios are emerging for the future of booklet A: a decrease in 1,7 % seems to be the most likely, even if we can imagine stabilization around 2 % or adjustments via tax reductions.
