What is the The Livret de développement durable et solidaire (LDDS)
The Livret de développement durable et solidaire (LDDS) is a tax-free savings account available to residents of France. Account holders are free to use their savings for whatever they please, but the banks must use the funds to finance attractive loans to improve the energy efficiency of homes.
What is the interest rate?
3% per year until at least January 2025. This is the rate since February 2023, it was previously at 2% and follows the increase in the rate of the Livret A. The interest is calculated twice per month and added to your savings on the 31st of December each year.
Do I have to pay any tax or social charges on the interest?
The interest earned is free of all French taxes (impôts) and social charges (prélèvements sociaux).
How much can I invest into an LDDS?
Up to 12,000 euros. Your account can exceed this limit if the excess is due to interest, but payments into the account cannot exceed 12,000 euros.
Who can open one?
Any adult who is a tax resident of France, there is a limit of two per fiscal household. Minors can also open accounts if they have their own sources of income and are not fiscally attached to their parents or guardians.
Do I need an LDDS to benefit from an energy efficient loan?
No, there is no obligation to hold an LDDS if you wish to apply for an energy-saving home improvement loan. The banks are obliged to provide these loans at “attractive rates”.
Can I open an LDDS 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 an LDDS.
Do I maintain access to my funds?
Yes, there are no minimum holding periods, only normal bank transfer processing times to transfer funds.
What are they charges?
There are no charges.
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.