A child's savings: savings accounts, home savings plans, equity savings plans and assurance-vie compared in 2026

For a minor child, it is generally the parents who open and manage the savings account until the child turns 18. Several products can be opened for a child from birth: the Livret A savings account, the PEL (home savings plan), the PEAC (capital savings plan), assurance-vie, and a bank savings account. They differ in four ways: the deposit limit, when the child can access the money, how the funds are invested, and the tax treatment. The Livret A, PEL, CEL (home savings plan), and PEAC have a deposit limit. Assurance-vie and bank savings accounts do not have a deposit limit.

This page compares these products. It does not cover PEA and securities accounts for minors, nor the declaration of interests of a child included in their parents' tax household, nor the rules of gift.

Who opens, who manages

Opening a savings account for a child is generally done by their parents or legal guardians. The same applies when other people, such as grandparents, contribute funds. Two exceptions are listed on official documents: the Livret A savings account, which a minor can open themselves, and the Livret Jeune (youth savings account), which a child can apply for from the age of 12 with parental consent. Until the child turns 18, the legal guardian manages the CEL (housing savings account), the PEL (home savings plan), bank savings accounts, and assurance-vie policies.

The conditions for opening a Livret A savings account by a minor himself, in particular the age requirement, are not formulated in the same way on all official pages: they should be checked with the bank before any action is taken.

Parents do not have free access to these funds. For an account or savings account, parents can only use the money for expenses directly related to the child: education, upkeep. They must account to the child for how this money is used. After the child turns 18, they have five years to take legal action against their parents to recover their capital.

Products opened from birth

The interest rate on the Livret A savings account can change. According to service-public.gouv.fr, the Bank of France calculates the regulated rates and submits them to the Ministry of the Economy every six months. The current rate should be checked before making a decision.

Products that open later, or not at all

• The youth booklet This account is for young people aged 12-25. A child can open it themselves from the age of 12, with parental consent. The maximum deposit is €1,600. The interest rate is set by the bank, but cannot be lower than the Livret A savings account rate. Interest earned is exempt from income tax and social security contributions. From ages 12 to 16, a child needs permission from their legal guardian to withdraw funds. From ages 16 to 18, withdrawals are free unless the guardian objects. From age 18 onwards, withdrawals are independent. Parents cannot withdraw funds from the youth savings account themselves. The account is closed no later than December 31st of the year the child turns 25.
• The LDDS It is closed to any person, adult or minor, as long as they are financially dependent on their parents. Its limit is €12,000.
• The LEP is not open for a child.
• The CEL Accepts minors. Maximum deposit: €15,300. Initial deposit of €300. The minimum amount of subsequent deposits and the interest rate are not listed here: official pages do not all formulate them in the same way, and they should be verified with the bank on the date of account opening.

The PEL: conditions you need to know

The PEL (Home Savings Plan) is opened with an initial deposit of at least €225. A minimum of €540 must then be deposited annually. The interest rate is fixed at the time the plan is opened: 2% for a plan opened from 01/01/2026, 1.75% in 2025, and 2.25% in 2024.

The minimum term is 4 years. The plan can be extended annually up to 10 years. Early withdrawal closes the plan, with consequences that depend on the plan's duration. A PEL (Home Savings Plan) is therefore a multi-year commitment.

For a home savings plan (PEL) opened since 2018, income tax is 12.8% on the interest earned each year. Social security contributions are added to this. Their rates should be checked when making the decision.

The PEAC: the product reserved for young people

The climate savings plan is reserved for those under 21 years of age residing in France. A parent can open one for their minor child. Each person is entitled to only one PEAC (Plan d'Épargne Avenir Climat - Climate Future Savings Plan).

• Investment. The payments are used to acquire financial securities that finance the ecological transition and bear the SRI or Greenfin label. The savings are invested in the financial markets: their value fluctuates and there is a risk of capital loss.
• Managed investment. When this option is chosen, economie.gouv.fr indicates that the proportion of low-risk assets must be at least 70% of the outstanding balance starting two years before the liquidation date. service-public.gouv.fr states the rule differently: the proportion of assets presenting a high risk of loss is limited to 30% of the portfolio starting two years before the maturity date. Free management of the asset allocation remains possible.
• Blockage. The funds are locked for at least 5 years and until the age of majority. Withdrawal before age 18 is possible in the event of the account holder's disability or the death of a parent.
• After a withdrawal. No further payments are possible.
• Taxation. The gains are exempt from income tax and social security contributions. The holder must still declare their net gains.
• End of plan. It is automatically closed on December 31st of the year the holder turns 30.

Assurance-vie for a child

A minor cannot take out a assurance-vie policy on their own. Their parents can take it out on their behalf. An emancipated minor, between 16 and 18 years old, can take out a policy independently. Until the child turns 18, the parents manage the policy.

Service-public.gouv.fr distinguishes between insurance taken out by parents and insurance taken out on the life of a minor. For the latter, the website states that it is prohibited to take out a policy on a minor under 12 years of age, and that from the age of 12, the minor must give their own consent, with the written authorization of their legal guardian. The identity of the insured person on the policy must be verified with the insurer before any policy is taken out for a young child.

There is no deposit limit or legal minimum amount. The insurer or intermediary may set a minimum. Entry and deposit fees are capped at 5% of the premiums paid during the year. Returns depend on the investment options chosen: euro funds or unit-linked funds. Unit-linked funds carry a risk of capital loss.

The taxation of gains depends on the age of the contract. It is covered on a dedicated page: this page does not specify any rates.

Numerical example (fictitious profile)

Situation. Parents want to save €100,000 for their 8-year-old son, for his studies and entry into the workforce. He will be 18 in ten years. He is not eligible for a youth savings account until he is 12.

Issue. The Livret A and PEL savings accounts have caps. The question is how much they can hold.

Strategy. Parents first look at the limits of the Livret A and the PEL, then at what remains to be invested elsewhere.

Result.

The remaining €15,850 can be deposited into the PEAC (French Equity Savings Plan) limit (€22,950), a bank savings account, or a assurance-vie policy, which have no deposit limit. For an 8-year-old child, the clarification given above regarding assurance-vie for minors under 12 applies: this must be verified with the insurer before any subscription. The website does not make the choice for them: the choice depends on the investment horizon, the level of risk/return the family is willing to accept, and the withdrawal conditions. Both the PEAC and unit-linked funds carry a risk of capital loss.

The profile is fictitious. The calculation assumes that rates remain the same for twelve months, which is not guaranteed since regulated rates can change every six months. Interest earned on the Livret A savings account is tax-exempt. Interest earned on the PEL (home savings plan) is shown before tax. These figures illustrate the calculation and do not reflect your specific situation.

What changes depending on your situation

• The child's age: the youth savings account, the withdrawal of the Livret A savings account alone, and the exit from the PEL and PEAC savings plans are available at different ages.
• The horizon: a PEL or a PEAC locks up sums of money for several years.
• The amount to be invested, in view of the limits.
• The level of value variation that the family accepts, which separates the savings accounts of the PEAC and the units of account.
• The child's tax status: a child dependent on their parents cannot hold an LDDS.
• Residency: The PEAC and the youth savings account assume residency in France. The rules for leaving France are not included in the information provided. These rules should be checked before departure.

No results are promised.