BUSINESS
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SIMPLY LIVING FRANCE
Business Navigating around business here in France can be extremely daunting even without the added language barrier! However, Simply Business are here to help! Our resident business guru Tia Malcolm has a wealth of experience and knowledge which she shall be sharing with you each month as well as inviting various expert writers in the field of tax, accounting and much more.
Tia Malcolm discusses French savings system. tia@simplylivingfrance.com @simplylivingbusiness @simplylivingfrance
Choosing the right savings account in France.
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n France, there are quite a few savings account options (comptes d’épargné) you can choose from. If you are a resident in France, it is easy to open a savings account, all you need to do is book an appointment with your current account bank and discuss your needs with them. Here are the two short-term savings accounts. Instant savings accounts or ‘comptes sur livret’ these accounts do not come with set terms and you can deposit and withdraw money whenever you like. Unfortunately, these accounts do not have a particularly good interest rate, but they do offer other benefits, especially in regard to tax in France.
A fixed-term account or ‘compte á termé’ often requires a minimum deposit amount, or the savings must be accumulated over a set period. These accounts tend not to be regulated, have high-interest rates, and do not have a maximum deposit amount. These accounts come with a setup fee and can cost you dearly if you choose to close them before the agreed end term. When choosing a savings account in France, do not just consider the interest rates or terms; also consider the tax benefits. In France, like in many other countries, you are responsible for paying personal tax and social security contributions on your savings. However, as of January 2018, the tax that the bank deducts from your ‘Prélèvement Fiscal’ is a flat rate of 30% (17.2% social charges and 12.8% income tax). In addition, tax exemption is available on some of the lower-earning incomes. Still, no exemption is available on social charges.
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