9. French Bank Savings Accounts

1. 9.1. European Tax Directive
   9.2. Regulated Savings Accounts
   9.3. Standard Savings Accounts
   9.4. Home Buyers Savings Accounts

9.3. Standard French Bank Savings Accounts

These are ordinary savings deposit accounts offered by all the banks and available to residents and non-residents alike.

The accounts are known as Livret B if offered through La Poste and Caisse d’Epargne and as compte sur livret if offered by the main banks. They are generally instant access accounts.

If the deposit account is held for a specific period, during which time they are not accessible, then the account is known as a compte à terme. These accounts normally have a product name given to them e.g. Gamme varius, Fidelis.

The interest rates are not regulated and there is no maximum deposit.

The current rates of interest varies as between the banks, but they are around 2.5% for instant access accounts and up to 4.5% for term accounts (Winter 2007). The interest is calculated every 15 days.

However, the banks are regularly posting promotional offers (often referred to as Super Livrets) at rates of interest in excess of this average. The most aggressive of these are the internet banks.

There is a French web site that provides information on comparative rates, which you can find at Comparison of Rates.

In all cases you will find that the higher rate of interest is only available for a limited period, and there are likely to be set up fees.

You are also liable to income tax and social charges on interest earned. If you are a non-resident EU European you will be taxed at source at the rate of 18%. Double taxation treaties with most countries should mean you would not get taxed twice on the same income. Other nationalities may also be taxed at source depending on the terms of any taxation treaty with France.

If you are resident, you can either be taxed at source, at the rate of 18% (applicable for savings from Jan 08), or declare the interest through your annual tax return. The system of being taxed at source is called prélèvement libératoire.

In either case, if you are resident you will also be liable for the payment of the social welfare levy, at the rate of 11%. The levy is knows as the prélèvement sociaux.