LDDS Explained: Rate, Ceiling & How France's Sustainable Savings Account Works (2026)
The Livret de Développement Durable et Solidaire (LDDS), previously called the Codevi, is a regulated savings account available from French banks. It lets you set money aside while keeping the freedom to withdraw it at any time, and it channels part of your savings toward sustainable and socially useful projects. Think of it as the Livret A's close cousin, with a green and solidarity focus.
How does the LDDS work?
The LDDS bundles together several appealing features. Your money stays available at all times, the capital is guaranteed by the French state so you can't lose what you put in, and the interest is exempt from both income tax and social charges. There are no opening, management or closing fees, and the rate is set by the public authorities rather than the bank, generally moving in step with the Livret A. Because the interest is tax-free, you don't declare it on your annual tax return.
The deposit ceiling is €12,000, not counting the interest that accumulates on top.
What's the rate today, and when is interest paid?
As of August 2026, the LDDS pays 1.70% a year, tax-free, having risen from 1.50% on 1 August 2026 in line with the Livret A. This rate isn't fixed for life: like the Livret A, it follows a regulatory formula based on inflation and short-term euro rates, is reviewed twice a year, on 1 February and 1 August, and can go up or down. The next review is set for 1 February 2027.
The last few years give a sense of the swings. The LDDS tracked the Livret A down to its 0.50% floor in 2020 and 2021, then climbed as inflation returned, reaching 3% from February 2023 through 2024, before easing back to 2.40% in February 2025, 1.70% that August, 1.50% in February 2026, and back to 1.70% in August 2026.
Interest is calculated in fortnightly periods (quinzaines): a deposit starts earning from the next period, a withdrawal stops earning from the period it falls in. The interest is added to your capital once a year, on 31 December, and then earns interest itself the following year.
Where does the money go?
The money you deposit is pooled with other regulated savings. Banks keep part of it to help finance the economy, while another share is centralised at the Caisse des Dépôts et Consignations.
Those resources fund things like loans to small and medium-sized businesses, energy-transition projects, energy-efficiency works, wider sustainable-development initiatives, and certain players in the social and solidarity economy. You don't pick the projects yourself, the account holder doesn't choose where the money is directed.
Who can open one?
The LDDS is reserved for people whose tax residence is in France, and an individual can normally hold only one. You can, however, hold a Livret A, an LDDS and other regulated savings products at the same time, as long as you meet the conditions specific to each.
LDDS or Livret A: what's the difference?
The two are very close. Both offer immediate availability, a state-guaranteed capital and tax-free interest, and they usually carry the same rate. The main differences are the deposit ceiling, €22,950 for the Livret A against €12,000 for the LDDS, and where the money goes: the Livret A leans toward social housing and the economy, while the LDDS is geared toward sustainable development and the economy.
The takeaway
The LDDS is first and foremost a precautionary savings account: available money, no risk to your capital, and no tax on the interest. What it doesn't let you do is choose exactly what your money funds, and its return stays modest.
It's especially useful once you've filled your Livret A, or if you want part of your savings to support sustainable-development projects while keeping it safe and within reach.
Living in France and unsure how to organise your savings?
If you are an expatriate living in France and want to understand how French savings products fit alongside your other investments, your currencies and your long-term plans, you can book a free introductory call to discuss your situation and identify the key points that should be checked.
Disclaimer: This article is for general information and educational purposes only. It is based primarily on official French government sources and other trusted references. It does not constitute personalised tax, legal or financial advice. Savings and tax rules depend on individual circumstances, the country concerned and the applicable tax treaty.
