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 Banque Postale 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, although there may be a minimum deposit.

The banks are regularly posting promotional offers (often referred to as Super Livrets) at rates of interest in excess of the main average rates. The most aggressive of these are the on-line 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 24% (2012). 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 19% (2011)/21% (2012), or declare the interest through your annual tax return. The system of being taxed at source is called prélèvement libératoire forfaitaire - PFL.

Top Tip!

If your marginal rate of French income tax is greater than 21% then you would be better off electing to be taxed at source. If not, take the interest gross, and declare with your other income on your annual tax return.

In either case, if you are resident you will also be liable for the payment of the social charges, at the rate of 13.5% (15.5% wef 1st July 2012). The charges are known as the prélèvements sociaux, but they are also known as the contributions sociales.

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