Savings accounts for children: What you need to know

Help your child prepare for the future with this useful guide on opening a savings account for children in France. 

Why open a savings account for your child?

Opening a savings account for a child is a great way for them to learn about money and to encourage children to develop good savings habits as they grow-up.  What’s more, with regular savings children can build a handy nest egg for their further education or other projects. 

What types of savings accounts for children are available?

There are multiple types of savings accounts available for children including instant access savings and also other investment options.  These include the Livret A, a Plan Epargne Logement (PEL) and the Assurance Vie.

The Livret A is ideal for regular saving. For instance, parents can transfer money each month to pay towards items such as a new bike or other things. 

An Assurance Vie is useful for building up a capital sum for a child’s future. When they turn 18 and start their adult life, they can benefit from all the advantages the Assurance Vie has to offer.

What is the minimum age to open a child's savings account?

An adult may open a savings account in the child’s name from birth. 

Until the age of 18 years a parent/guardian retains control over any money held in the account. A child can though view their savings via an online account set-up by an adult.

From the age of 12, a child can open by themselves a Livret Jeune account. It includes a card for making withdrawals of up to 20€ per week.

What is the minimum amount required for opening a savings account?*

The minimum amount to open a savings account is 10€.

The maximum amount you can save varies between the types of account, for example:

1. Livret Jeune: 1 600€ 
2. Livret A: 22 950€

What is the interest payable for a savings account?*

Individual banks set the interest rate for a Livret Jeune account. As an illustration, Crédit Agricole currently offer an interest rate of 4%.

The French government regulates the interest rate for the Livret A account. It is calculated using inflation rates and other data. The current rate is 3%.

Assurance Vie: the return on funds held will depend upon the return on managed funds and their overall performance.

Are children savings accounts liable for tax?

Investments in the Livret Jeune and Livret A are tax free in France. 

Tax is payable however on some types of account such as the Plan d'Epargne Logement (PEL). 

Can a child open a bank account?

Yes. In addition to savings accounts, a child may open a bank account. However, if they are under 18 years of age a parent or guardian will need to provide an accompanying letter. 

The person opening the account must provide ID for themselves and the child together with a proof of address. 

* Interest rates and conditions valid from 09/2024, subject to change.

First published: 10th September 2024
Image used is provided by Getty Images.