This French state-regulated savings account pays 3.5% (tax-free) in 2025

The Livret d’Epargne Populaire (LEP) is a state-regulated savings account that offers the highest tax-free interest rate, however it is only available for people with modest incomes and capped at €10,000.

From February 2025, the interest rates on both the Livret A and LDDS have fallen to 2.4% in line with France’s falling rate of year-on-year inflation.

The finance ministry adopted the new rates following a recommendation from the Banque de France. The reduction had long been expected after inflation in France slowed following a peak during the Covid pandemic.

The rate of the LEP was likewise reduced from 4% to 3.5%.

Nonetheless, it remains the best state-regulated (and guaranteed) account available to savers in France.

However, in order to take out the policy - or keep it once you have one - your income must not exceed a certain ceiling, which is revised each year in line with inflation.

On February 3, this threshold was adjusted by 1.8% in line with year-on-year inflation, meaning that people must earn less than €22,822.54 to qualify for an LEP

This figure corresponds to the revenu fiscal de référence (reference tax income, RFR) shown on the tax statement received in the summer of 2024, relating to 2023 income. 

If your 2024 income (shown on your 2025 tax statement) exceeds this threshold, you can still open or keep your LEP, as eligibility is determined by the RFR for one of the two previous years (2023 or 2024).

In addition, the threshold is adjusted based on the number of tax ‘parts’ associated with the tax payer.

Under the French tax system, the number of ‘parts’ is used to calculate a figure called the quotient familial (family quotient), with each individual family member contributing a ‘part’ to the household’s level.

Adults are usually classed as one whole part each and children as a half or whole part, depending on the number of children.

A family of two working adults and one child would be given a household score of 2.5 points – one part each for the adults and a half part for the child.

In such cases, the revenue threshold to qualify for the LEP is adjusted to €41,106.84.

Note that despite the higher threshold, the cap on the LEP remains the same at €10,000. Once the savings in the account hit this cap, no more money can be put in.

Nonetheless, the LEP (like the Livret A and LDDS) can exceed their cap due to the accumulation of interest which can remain within the account.

Read more: Graph: How France’s inflation rate compares with other EU countries

LEP threshold according to family ‘parts’