Bank savings account: how it works and taxes

A bank savings account is a savings account open to everyone, with an interest rate set freely by the bank and which can be changed after opening. The interest earned is subject to income tax and social security contributions; it does not offer the tax advantages of regulated savings accounts. The 12.8% deduction made by the bank is an advance payment, which you may be exempt from depending on your income.

This page explains how a standard savings account works and is taxed for a French tax resident. It does not provide market rates, does not calculate social security contributions (see below for why), and does not cover non-residents or regulated savings accounts (Livret A, LDDS, LEP).

The essentials in one table

An ordinary savings account, not a regulated one

The official information sheet specifies that the savings account does not offer the same tax advantages as regulated savings accounts. Among the products whose income is exempt, the tax administration's website lists, in particular: the Livret d'épargne populaire (LEP), the Livret A, the Livret jeune, the Livret de développement durable et solidaire (LDDS), the Plan d'épargne populaire (PEP), the Livret d'épargne entreprise (LEE) for accounts opened before January 1, 2014, as well as the Compte d'épargne logement (CEL) and the Plan d'épargne logement (PEP) opened before January 1, 2018 (for the PEP, the interest accrued during the first 12 years of the plan). The standard savings account is not among the exempt products listed on this page. However, on the tax administration's page dedicated to investment income, it appears among savings accounts (regular interest-bearing bank savings accounts) in the list of fixed-income investment products.

How does a savings account work?

Opening. Anyone can open a bank savings account. "There are no age, nationality, or residency requirements." The information sheet indicates that it is possible to hold several accounts at different banks.

Rate. «"The interest rate on a bank savings account is set freely by the bank." It can change: "The interest rate offered when the account is opened can be modified later by the bank." The advertised rate is called the gross rate: it does not take tax into account.

Minimum amounts. Each deposit must be at least €10, as must each withdrawal. The balance cannot be less than €10.

Ceiling. The law does not stipulate a deposit limit. "But the bank can include a limit in the contract."«

Calculation of interest. Interest is calculated every two weeks, as with the Livret A savings account. According to the table in the information sheet, a deposit only accrues interest from the value date indicated below:

On December 31 of each year, the interest accrued during the year is added to the principal.

Transfer and closure. The account cannot be transferred to another bank; it must be closed and a new one opened. Closing the account is requested from the bank and is free of charge.

Seizure. The administration, or a creditor with a court order, can seize the passbook.

Inactive account. According to the official information sheet on inactive accounts (verified on October 8, 2026), a savings account is declared inactive when, for five years, the account holder has not made any transactions on that account or any other account held at the same bank, and has not contacted the bank. The bank then holds the funds for ten years. This period begins from the date of the last transaction, the last contact, or the end of a period of inactivity. If no one contacts the bank during this period, the funds are transferred to the Caisse des Dépôts et Consignations (French Deposits and Consignments Fund).

Interest taxes

The 12.8 % sample

Investment income is subject, with some exceptions, to a flat tax of 12.8% (%). The bank deducts this amount when the interest is paid. According to impots.gouv.fr, this deduction constitutes an advance payment of income tax. The tax is calculated when you file your tax return.

Social security contributions: no specific rate is given here.

Interest is also subject to social security contributions. The rate changed on January 1, 2026, and there are exceptions depending on the product: this page does not provide the specific rate. Check the applicable rate with the official source (the tax administration's page on investment income) and with your bank, then on your tax return.

Waiver of the deposit

You can request to be exempt from the 12.8 % advance payment if your reference tax income (RFR) for the year before last is less than:

• €25,000 for a single person, a widower or a divorced person; ;
• €50,000 for a married or civil union couple subject to joint taxation.

These thresholds are those specified by the tax authorities for fixed-income investment products. The same page includes savings accounts (ordinary interest-bearing bank accounts) among these investments, but it doesn't explicitly mention savings accounts in relation to the exemption: have your bank confirm that these thresholds apply to your account. The reference year is the year before last: for interest earned in 2027, this would be the reference tax income (RFR) of 2025.

The request is made to the bank, by means of a sworn statement. According to impots.gouv.fr, it must be submitted "before November 30th" of the year preceding the receipt of the income; the fixed-term deposit statement specifies "no later than November 30th of the year preceding the payment." The two statements are not identical: submit your request before this date, without waiting until the last day, and ask your bank for the exact deadline. For interest received in 2027, the deadline is therefore the end of November 2026, in a few weeks.

The exemption applies to the advance payment. It does not eliminate the tax: the interest remains taxable.

The option for the progressive scale

You can opt to have all your investment income taxed according to the progressive income tax scale by checking box 2OP on your tax return. "As of 2026, the irrevocable nature of this option has been removed." The option applies to all of this income, not just a single account.

Deposit protection

According to economie.gouv.fr, "the current rule is €100,000 per depositor and per institution." The page specifies that this protection covers all types of deposits, including current accounts, fixed-term accounts, and savings accounts. For a joint account, each joint holder is covered for their share of the deposits. The page consulted is undated: verify it before deciding on a distribution.

Numerical example (fictitious profile)

Situation. A single executive has €140,000 in deposits across ordinary savings accounts, all at the same bank. He earned €2,800 in gross interest during the year. His reference tax income for the year before last was €64,000. These three amounts are hypothetical.

Issue. His reference tax income (RFR) of €64,000 exceeds the €25,000 threshold for a single person: he cannot request an exemption. On €2,800 of interest, the bank deducts an advance payment of 12.8% (%), i.e., 2,800 × 0.128 = €358.40. Furthermore, his deposits exceed the rule of €100,000 per depositor and per institution by €40,000 (€140,000 − €100,000).

Strategy. Before filing his tax return, he considers three questions: the option for the progressive tax scale (box 2OP), the distribution of his deposits between institutions, and the place of this cash in his overall assets.

Result. The advance payment taken is €358.40. Social security contributions are added to this; they are not calculated here, for the reason explained above. The amount exceeding the €100,000 threshold is €40,000. With a reference tax income (RFR) of €24,000, he could have applied for an exemption, as €24,000 is less than €25,000.

This profile is fictitious. The figures illustrate the mechanism and do not predict any outcome for your situation.

What changes depending on your situation

• Your family situation and your RFR (Reference Fiscal Income) determine whether you are eligible for an exemption.
• The date of your exemption request, to be confirmed with your bank.
• Your bank's contract: possible limit, rate and rate modification.
• Your total income determines whether the progressive tax scale option is advantageous.
• The total of your deposits in each establishment.
• Your tax residence: the official information sheet does not specify a residency requirement for opening the savings account, but the pages consulted for this information do not address the tax regime for non-residents. If you are leaving or returning to France, have your situation reviewed before making a decision.
• The role of these savings in your assets. This page does not answer that question.

No results are promised.