Why 7 Million French Citizens Are Missing Out on a 2.5% Savings Account

As the popularity of the Livret A savings account wanes, a more lucrative option, the Livret d’épargne populaire (LEP), offering a 2.5% interest rate, remains overlooked by approximately 7 million eligible French citizens. This oversight could be costing individuals significantly more than they realize.

While many are vigilant about securing discounts at the supermarket, they might be allowing substantial sums to slip away at the bank. The Livret A, currently yielding 1.5% and projected to rise to 1.7% in August, pales in comparison to the LEP, which offers a net rate of 2.5%. Despite its advantages, a staggering 7 million eligible individuals are not taking advantage of this opportunity.

Designed for low-income earners, the LEP is a state-backed account that is completely free from taxes and social contributions. It functions similarly to the Livret A but provides a higher return, acting as a financial safeguard against inflation for those who need it most. If you have a modest taxable income, you may qualify for this account without even realizing it.

The LEP: A 2.5% Savings Account Many Overlook

The LEP has maintained a competitive interest rate of 2.5% since February 1, contrasting sharply with the Livret A’s current rate of 1.5%. Like its more popular counterpart, the LEP is guaranteed by the state, allows for instant access, and is exempt from taxes on interest earned. In fact, during the peak inflation of 2023, the rate even surged to 6% to help households cope with rising prices.

According to the Bank of France, there were 12.1 million LEP accounts opened by the end of 2025, a figure not seen since 2008. However, the bank estimates that over 19 million households meet the eligibility criteria, indicating that only about 65% have taken the step to open an account. The institution describes the LEP as a “financial protection tool for low-income households.”

Are You Eligible for This Popular Savings Account?

Eligibility for the LEP hinges on your taxable income as indicated on your tax notice. For the year 2026, a single individual must have a taxable income of less than €23,028. A household with two tax shares should not exceed €35,326, while three shares have a limit of €47,624. If your income exceeds these thresholds, banks cannot open an LEP for you.

For example, a single woman with a taxable income of €22,000 qualifies, as does a couple earning around the median salary who remain below the two-share limit. The LEP is an individual account but can be held alongside a Livret A or a LDDS. The minimum initial deposit is €30, with a cap of €10,000 that can be deposited, excluding interest that may increase the total balance.

What You Stand to Lose by Not Opening an LEP

While the difference in interest rates may seem marginal, the financial implications are substantial. If you leave €10,000 untouched for five years in an LEP at 2.5%, compared to a Livret A at 1.5%, the potential earnings gap could be around €540. This amount could cover several fuel fill-ups, an electricity bill, or a portion of back-to-school groceries, all without taking on additional risk.

The primary reason so many households miss out on this opportunity is a lack of awareness, compounded by banks’ reluctance to promote the LEP. Emmanuel Moulin, the governor of the Bank of France, acknowledges that “the policy to support the LEP has been effective,” but he also notes that there is still “significant room for improvement.” To open your own account, simply provide your latest tax notice to your bank, which will verify your eligibility and activate the account.