Whether you’re looking to save for the long term or a specific event, there are various savings in France to suit. Jennie Poate of Beacon Global Wealth reviews your options…
Banks and post office
Banks and the post office, La Poste in France, offer a range of deposit accounts that pay a fixed or variable rate of return.
A basic deposit account is available for both resident and non-residents, and is called a ‘compte à terme’. They offer variable rates and the interest is taxable.
Livret A and Livret Bleu
Other accounts have a fixed rate of return set by the government. They are offered by most banks and La Poste and the interest, although low is tax free. These accounts are great for sitting alongside your current/checking account and it’s easy to switch funds between the two. The nearest equivalent in the UK is a Cash ISA, but in France, once you have reached the limit of funds that can be held, only the interest earned can exceed that and is normally added at the end of each year. These are available to residents (not including Livret ‘Bleu’).
LEP: Livret d’Epargne Populaire
For the ‘LEP’ the maximum income threshold for an account is €19,977 for a single person, and €30,645 for a couple. It is increased by €5,334 for each additional ‘half-part’ of a household, eg child. It is designed as an extra savings tool for those on low income.
The Livret ‘Jeune’ account is for ages 12-25.
All of the above accounts are accessible. Interest rates across Europe are generally low and indeed inflation in 2021 is running at 0.80% (www.inflation.eu/en/inflation-rates/france/current-cpi-inflation-france.aspx) which will in effect mean that the accounts are generally providing a return below inflation.
As advisors, we generally recommend that funds held in accounts such as these are the cash/emergency funds portion of any investment portfolio. Generally you can make an instant transfer if required.
Post Brexit, there are no changes for account holders.
Want to know more? Contact Jennie direct for more information, there’s no obligation.
By Jennie Poate, Head of Operations, www.beaconglobalwealth.com
Please be aware that Beacon Global Wealth management are not tax advisors or accountants.
The above information was correct at the time of preparation and does not constitute investment advice or research. You should seek advice from a professional adviser before embarking on any financial planning activity.
The information on this page is intended only as an introduction only and is not designed to offer solutions or advice. Beacon Global Wealth Management can accept no responsibility whatsoever for losses incurred by acting on the information on this page.
The financial advisers trading under Beacon Wealth Management are members of Nexus Global (IFA Network). Nexus Global is a division within Blacktower Financial Management (International) Limited (BFMI).All approved individual members of Nexus Global are Appointed Representatives of BFMI. BFMI is licenced and regulated by the Gibraltar Financial Services Commission and bound by their rules under licence number FSC00805B