French Livret A suffers worst first-half outflows since 2008 as rate cut bites, with €5.93bn withdrawn

Record outflows in the first half

French savers pulled a net €5.93 billion from the Livret A between January and June 2026, the Caisse des Dépôts reported on Wednesday 22 July. The state financial arm, which manages the bulk of the outstanding deposits, said it had never recorded such a large net outflow in a first half since consolidated data began in 2008. When combined with the Livret de développement durable et solidaire (LDDS), which saw net withdrawals of €960 million, the total outflow since 1 January reached €6.89 billion.

The combined outflow for the Livret A and LDDS totalled €6.89 billion since 1 January.

For context, net inflows for the two accounts stood at €6.03 billion in the same period of 2025, more than €15 billion in 2024, and nearly €26 billion in 2023, the all-time high. The worst half-year on record for the Livret A remains July–December 2015, when net withdrawals hit €6.86 billion, driven by a shift into higher-yielding plans d'épargne logement (PEL) ahead of a rate cut.

The rate cut and inflation squeeze

The exodus follows the reduction of the Livret A rate to 1.5% in February, down from a plateau of 3% reached in 2023. With inflation running at 1.8% year-on-year in June (after 2.4% in May), the real return turned negative, pushing savers toward better-paying alternatives such as life insurance. The Caisse des Dépôts noted that, for the first time, the capitalisation effect no longer offsets the outflows: interest credited at the end of 2025 failed to compensate for the 2026 withdrawals.

The Livret A was also challenged by other, more remunerative investments, such as life insurance.

Total outstanding balances across the Livret A and LDDS stood at €608.3 billion on 30 June 2026, down 0.1% over twelve months. The Livret d'épargne populaire (LEP), capped at €10,000 and reserved for low-income households, recorded a net outflow of €380 million since 1 January, leaving total deposits at €83.5 billion at the end of June.

A rate hike on 1 August

In mid-July, facing the first-half inflation rebound, authorities decided to raise the Livret A rate to 1.7% effective 1 August. The new rate, which also applies to the LDDS but not the LEP (held at 2.5%), will remain in force until 31 January 2027. Officials hope the increase will stem the outflow and restore a positive real yield if inflation continues to ease.

The increase of the Livret A rate to 1.7% on 1 August could help halt the slide and return to a positive return if the decline in inflation is confirmed.

June data shows a possible slowdown

June alone saw a net outflow of €920 million from the Livret A, according to Les Echos, while Le Monde reported a combined Livret A and LDDS outflow of €1.17 billion for the month. Both outlets noted that the pace of withdrawals appeared to be easing slightly compared with earlier months, though the figures remain deeply negative by historical standards.