To kick off this series on different savings options, we take a look at the Livret A passbook savings account. What are its features, who can open it and how much does it earn? You ll find all the answers to your questions.

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1. Who can open a Livret A?

All natural persons, adults or minors, co-owners associations, associations, can open one. Please note, however, that you can only have one. If you already have one in one bank, it will be impossible to open another in another bank.

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2. What is the Livret A ceiling?

The Livret A is capped. This means you can t exceed a certain amount. This depends on your status:

• Individuals: €22,950
• Associations: €76,500 (this can rise to €100,000 for co-owners associations)
• Low-cost housing organization: unlimited

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3. How does the Livret A work?

This passbook is one of the simplest and least risky on the market. In fact, to open a Livret A, all you need to do is deposit at least €10. You can then deposit as much or as little as you like, at your own pace, subject to the minimum deposit of €10. Once you ve reached the ceiling, you can t put any more money into your savings account. However, the remuneration continues to increase, allowing you to exceed the maximum amount.

For withdrawals, you can withdraw all or part of your savings instantly (depending on your bank).

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4. How is it remunerated?

The Livret rate has been set at 3% since February 1ᵉʳ, 2023. This rate is set by the State and is revisable twice a year. To calculate your benefit, you need to rely on the fortnightly rule. You should therefore deposit your money on the 30th and 15th of each month, and withdraw it on the 1st and 16th of each month.

Interest accrued over the year is then added to the capital on December 31 each year. The Livret A ceiling can then be exceeded.

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5. Do I have to declare anything?

As the holder of a Livret A, you have nothing to declare to the tax authorities. Amounts paid in or withdrawn and interest income are exempt from income tax and social security contributions.