What is a Livret jeune in France?
A livret jeune is tax-free savings account available to those aged between 12 and 25 years old and resident in France.
Who can open one?
Anyone habitually resident in France and aged between 12 and 25 years old. Each eligible person can only have one livret jeune. However, the young person may also be able to open a Livret A, a Livret d’épargne Populaire (LEP), or a Livret de développement durable et solidaire (LDDS), if they meet the criteria for each product.
Those who are under 16 years old require the authorisation of their parents in order to open an account. Minors aged between 16 and 18 can open an account without approval from their legal guardians, unless their parents or legal guardians contact the bank to object.
What is the interest rate?
Currently, the interest rate must be at least 3%, but banks are free to offer higher interest rates if they wish. As of 2023, all of the main banks are paying an interest rate of 3% for savings in a livret jeune. The interest is calculated twice per month and added to your savings on the 31st of December each year.
Is the interest subject to income tax and social charges?
No, the interest earned is free of all French taxes (impôts) and social charges (prélèvements sociaux).
How much can you save in a livret jeune?
1,600 euros is the maximum that you can invest into a livret jeune. Your account balance can exceed this amount due to interest earned, without penalty.
Can I open a livret jeune in a different bank to the one which holds my current account?
Yes, since the 1st of July 2023, banks cannot oblige you to hold a current account with them as a condition for opening a livret jeune.
What are the charges?
There are no fees or charges for opening, operating or closing a livret jeune.
Do I maintain access to my funds?
Yes, but those who are under 16 years old require their parents’ permission to withdraw funds. If you are aged between 16 and 18, you can withdraw funds without the authorisation of your parents or legal guardians, unless they contact the bank to object.
What happens when the account holder reaches the age of 25?
The account holder must ask for their account to be closed by the 31st of December in the year that they turn 25. If they do not ask for the closure then their bank must close their account for them.
Useful links
- https://www.service-public.fr/particuliers/vosdroits/F2904
- https://www.economie.gouv.fr/particuliers/epargne-livret-jeune
- https://www.abe-infoservice.fr/epargne/epargne-bancaire/livret-jeune
The views expressed in this article are not to be construed as personal advice. Therefore, you should contact a qualified, and ideally, regulated adviser in order to obtain up-to-date personal advice with regard to your own personal circumstances. Consequently, if you do not, then you are acting under your own authority and deemed “execution only”. Additionally, the author does not accept any liability for people acting without personalised advice, who base a decision on views expressed in this generic article. Importantly, this article is dated and is based on legislation as of the date. It should be noted that legislation changes, but articles are rarely updated. Sometimes a new article is written; so, please check for later articles. Additionally, check for changes in legislation on official government websites. Finally, this article should not be relied on in isolation.
