Tax Free French Bank Savings Accounts
There are several government-controlled savings accounts in France that offer complete exemption from income tax and social charges.
With inflation in France now running at around 2.7%, the French government have been obliged to lift the savings interest rates on these accounts.
The most popular of these accounts is the Livret A, which now offers interest of 1% on savings, up from 0.5%.
The maximum that can be deposited in the account is €22,950 per person, excluding interest but, as the accounts are also open to children, this means that a family of four could deposit nearly €100,000 in Livret A.
Unlike other regulated accounts, Livret A is open to non-residents.
A similar account you can open is called Livret de Développement Durable (LDD).
Here again the rate of interest on saving has risen from 0.5% to 1%. The maximum deposit with the scheme is €12,000, excluding interest. The account can be used with other savings accounts, such as Livret A.
Finally, the account with the highest rate is Livret d’Epargne Populaire (LEP).
The rate of interest on a LEP is now 2.20%, again with interest free of tax and social charges.
Similarly, there is a maximum deposit, this time of €7,700 per person and a household cannot hold more than two accounts.
Access to the LEP is subject to a maximum income threshold which is €20,296 for a single person, and €31,125 for a couple, thresholds that are increased each year. It is increased by €5,344 for each additional 'half-part' of a household, eg child. For 2022 it is your taxable income for 2020 that is used, for which you will need to produce your tax notice to your bank.
All these accounts are instant access.
The new rates are effective from 1st February.
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