The French government has announced a reduction in the interest rate of the Livret A savings account from 2.4% to 1.7%, effective August 1, 2025. This marks the second decrease in the rate this year and is the largest drop since 2009. The decision follows a recommendation from the Banque de France, citing the slowdown in inflation during the first half of 2025 as the primary reason for the cut. The rate reduction is expected to result in a €2 billion gain for banks. Despite the lower rate, experts do not anticipate a mass withdrawal from Livret A accounts, which remain a popular savings vehicle in France. The rate adjustment is part of broader financial changes taking effect on August 1, including modifications to other regulated savings products such as the LEP and LDDS, as well as changes impacting electricity prices and the use of Linky electricity meters. The government and financial authorities have emphasized the need for savers to consider alternative investment options in light of the reduced returns on Livret A.