Livret A: ceiling, rate, maximum amount and interest 2025

Livret A is a very popular investment in France. Despite its fairly low interest rate, it allows you to grow your savings without taking risks and without paying taxes. How to open a Livret A? What is its rate in 2025? What is his ceiling? What are the conditions for depositing or withdrawing money from your savings account? How much does Livret A earn? Focus on this regulated savings product.

Capital Video: Booklet A: how does it work?

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What is booklet A?

Booklet A: definition

The A booklet again and again… It is one of the favorite investments of the French. As of December 31, 2023, the number of Livret A accounts stands at 57 million, according to the annual report on regulated savings from the Banque de France. More than 8 French people out of 10 therefore have one. This regulated savings book is an investment whose rate is set by the State, based on annual inflation over the last six months and interbank rates.

History of this regulated savings account

Created on May 22, 1818, the Livret A is the oldest and most widely used savings product. It was created after the Napoleonic Wars to stabilize the financial system, before being reoriented in the 20th century towards supporting social housing. Two hundred years after its creation, it remains a particularly safe product.

How many Livret A books can we open per person?

Booklet A is limited to one per person. If its holder wishes to open a new one in another bank, he is required to close the first one. Since January 1, 2013, banks have systematically checked that the customer does not have another Livret A in their name. Persons who fail to comply with this obligation are liable to tax fine equal to 2% of the outstanding balance of the supernumerary booklet. The fine is not recovered if its amount is less than €50.

How to open a Livret A?

Conditions for opening a Livret A

An adult or minor is entitled toopen a booklet A. There are no age, nationality or tax residence requirements in France. Opening the booklet at the bank only requires bringing an identity document and proof of address. Before opening it, the bank must query the tax administration to verify that the person does not already hold an A booklet.

To note : a minor can open an A booklet without the intervention of his legal representative. But he cannot make a withdrawal before the age of 16. From 16 to 18 years old, he can only do so in the presence of his legal representative.

Minimum amount of initial deposit when opening the booklet

Livret A has been offered by all banking establishments since January 1, 2009. The account is opened via a contract between the bank and the holder. It must specify the rules for operating the account (deposit, withdrawal, ceiling, calculation of interest, etc.). Last condition, the holder of the booklet must make an initial deposit of 10 euros minimum (1.50 euros for booklets opened at the Postal Bank).

What are the payment and withdrawal conditions?

The operation of the Livret A is simple: payments and withdrawals can be made at any time, provided they are for a minimum amount of 10 euros. There is no maximum withdrawal amount. Please note, however, that the balance of Livret A must remain positive after withdrawing the money. To track your deposits and withdrawals, simply consult your account statement. Since July 1, 2023, it is possible to make a transfer to your Livret A account from a current account (current account) opened in another bank.

On the 1st and 16th – the value dates – of each month, the interest on Livret A is calculated. It is therefore recommended to make payments on 15th or 30th of the month and withdrawals 1ᵉʳ or the 16th of the month.

What is the Livret A ceiling not to be exceeded in 2025?

Maximum savings amount

Since January 1, 2013, article R. 221-2 of the Monetary and Financial Code limits the ceiling of the Livret A and the future climate savings plan to 22,950 euros for a natural person.

Maximum amount for legal entities

However, there are three exceptions for legal entities:

• associations, for which the maximum amount is set at 76,500 euros,
• syndicates of co-owners, whose number of lots in the co-ownership used for housing, offices or businesses is greater than 100, this ceiling is set at 100,000 euros,
• low-income housing organizations (HLM) which are not subject to any limits.

What is the remuneration rate for a Livret A in 2025?

Unlike a savings account, the rate of interest for Livret A can be revised twice a year, on February 1 and August 1. From February 1, 2025, the Livret A rate will drop from 3 to 2.4%. Frozen since February 1, 2023 by the Banque de France, the annual interest rate of this regulated savings book stagnated at 3%. This drop is due to the literal application of the formula for calculating the yield of the Livret A, that is to say the average between annual inflation over the last six months (1.38%) and interbank rates ( 3.41%) over the same period.

How much does a Livret A book earn?

Calculation of Livret A interest

Interest is calculated on 1st and 16th of each month. The value date taken into account for the calculation of interest therefore varies depending on the date of the transaction. The sums deposited produce interest if they are invested in full fortnights. The value of a payment on the savings product is dated on the first day of the following fortnight.

Recapitalization of interests on December 31

At the end of each year, on December 31, the interest for the year is added to the capital. To calculate the amount of interest on Livret A, simply multiply the balance of the livret by the rate of remuneration in force. In 2024, the annual interest rate being 3%, if its holder has invested 1,000 euros over the entire year, he will receive 30 euros interest. Only the recapitalization of interest can increase the value of the booklet beyond 22,950 euros. Thus, at the end of 2024, the annual interest on a full Livret A account earned its holder 688.5 euros (22,950 x 0.03), i.e. a total amount of 23,638.5 euros. The interest earned was paid on the night of December 31, 2024 to January 1, 2025.

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Taxation of booklet A

The interest produced by the Livret A is exempt from income tax and social security contributions. In other words, the Livret A is completely tax-exempt, its return is net of taxes. It is therefore not impacted by the 30% “flat tax” implemented by the government.

What are the advantages of opening an A booklet?

Despite a very low rate, this account has several advantages. First, the money deposited, like the interest, can be withdrawn at any time, at the discretion of the holder. In addition, operations carried out on the A booklet (opening, deposit, withdrawal and closing) are free. Another undeniable advantage is that this savings account is completely tax-free: interest is not subject to social security contributions or income tax. Enough to attract savers who are wary of the risk of other investments.

Can the Livret A be combined with other savings products?

It is possible to combine booklet A with:

However, it is prohibited to hold both a Livret A and a special account in a Crédit Mutuel passbook (Livret Bleu).

Closing of booklet A

Closing the booklet A is done either by sending a letter to your bank, or by providing the bank advisor with the booklet references as well as the bank identity statement (RIB) of the account where the sums available in the booklet A must be transferred . Interest on the period since the beginning of the year is credited on the day the account is closed.

As Livret A accounts are no longer transferable from one bank to another (since January 1, 2012), in the event of a change of banking establishment, it is appropriate to close the Livret A account. And pay the savings into an account of his choice.