Which banks pay interest on current accounts for residents in France?
Online-only banks are leading the trend but the earning potential varies
The earning potential of these interest payments is not huge, but “it can be a way of offsetting the fees charged by your bank”, one expert said
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A small number of banks / financial institutions operating but not necessarily based in France pay their customers interest based on their account balance, and although it is still not considered ‘the norm’, there has been a rise in their number.
The trend was highlighted this week by newspaper Le Monde.
Which accounts pay interest?
Financial institutions (principally online banks / transfer platforms) that currently pay account interest include (non-exhaustive list):
Bunq
N26
Revolut
Sumeria (formerly Lydia)
Trade Republic
Saxo Banque
XTB
eToro
Wise
The rates offered are usually between 1% and 3%, and the rate is set to drop over the coming months, as the European Central Bank is expected to cut its rates.
Some of them offer more favourable rates for some customers, such as Trade Republic, which offers a 3% rate for its new current account, and a 1% ‘payback’ on card payments.
The earning potential of these interest payments is not huge, but “it can be a way of offsetting the fees charged by your bank”, said Anna Meylacq, spokesperson for bank comparison website Panorabanques, to Le Monde.
This means that you could have an account with many benefits at a lower overall cost.
How much do the accounts pay?
At the highest rate of 3% interest, you would need an average daily balance of €3,333 to earn €100 in gross interest over a year, says Le Monde, as an example. The earning would actually be less (€70) after the one-off flat-rate deduction of 30% investment income tax / social charges, in many cases.
However, some banks offer more favourable rates.
Online bank Sumeria launched an offer in May 2024, which is reserved for customers who make at least 15 transactions a month with their bank card. These users receive 2%. First-time customers who fulfil the criteria can even earn 4% for the first three months.
N26 and Revolut offer different terms depending on the customer’s chosen package, with terms improving depending on the level. For example, free accounts receive a rate of 1%. The ‘top’ package accounts receive 2.50% at N26 (for Metal card users, who pay a €16.90 fee per month), and 3.25% at Revolut (the Ultra account, which costs €45 per month).
Bunq, N26 and Sumeria calculate interest on the basis of the daily account balance and pay it to the customer the following month. Revolut calculates interest daily, and pays it into the customer's savings account the next day.
At Revolut and N26, customers have to open a savings account in addition to their current account to benefit. This is free, and customers can then transfer the amount on which they want to earn interest into the savings account. “If you need to make a purchase, for example, all you have to do is instantly transfer the amount to your current account,” said Jérémie Rosselli, managing Director of N26 France, to Le Monde.
Read more
The more traditional banks are not following Revolut’s decision to name accounts ‘comptes d'épargne’, as the name sounds very similar to that of France’s regulated accounts (e.g. the Livret A), which are completely different.
