French resident loses €28,000 as savings account is inexplicably shut

A man in central France has lost an estimated €28,000 in savings after his Livret A savings account was closed by his bank without his knowledge nine years ago. 

He went to his bank to retrieve the money in the account, opened on his behalf and in his name by his parents in 1975. 

However, he was informed by the Caisse d'épargne bank that the account had been closed in December 2016 and that the money had been transferred to the Caisse des dépôts et consignations (France’s national investment fund bank, or CDC). 

The bank currently has no explanation for why the government-regulated account was closed and the money transferred. The bank  should have informed the owner of the account closure, according to rules that came in shortly before the event.

Accounts can be closed if inactive 

Despite Livret A accounts having a maximum deposit threshold of €22,950, annually-accruing interest on this sum can be retained in the account when paid each year. 

There are no rules limiting how long an account can continue to accrue interest after reaching this threshold, however accounts can be closed due to inactivity (if funds are not accessed or money deposited). 

In the case of a Livret A, this is ten years, however for some other savings accounts such as the plan épargne logement this can be up to 20 years.

However since January 2016 so before the account was closed banks have been required to inform customers of an imminent closure via a registered letter with acknowledgement of receipt (lettre suivi avec accusé de réception). 

It is only after this letter has been received and if a customer does not interact with the account that it can be closed and the money inside passed to the CDC.

“According to the information provided to me, and the reply my client received from the Caisse d'epargne on June 18, 2024, there is no mention of any information having been sent to him concerning the closure of an account,” said Mr Tournier, a lawyer representing the man as quoted in Le Figaro.

There is also no record of the sum transferred to the CDC from the Livret A account.

Funds can still be reclaimed

However Mr Tournier is confident of a positive outcome for his client.

Even if an account is listed as inactive and its funds are transferred to the CDC, the money is held separately.

Account holders – and notably their legal heirs – can claim these funds for a considerable period after they are deposited with the CDC, it is only after 30 years since the last interaction with the account that the chance to recuperate it is lost.

Note, this is 30 years since an account has been used, not 30 years since the money was transferred to the CDC. 

For example, if a Livret A account was last used in 2000, the owner or heir has a little under five years left to claim the money.

Such requests can be made online.

In 2016, 6.5 million savings accounts and other similar products were classified as inactive, containing an average fund of €570. This €3.7 billion which the CDC holds can still be claimed, according to Le Figaro.

The only issue in the case above is that the bank did not keep an official record of the amount transferred over to the CDC. 

Read more: Livret A savings: Why are they so popular? How do I open an account?

The interest rate for a Livret A account is set to reduce in February 2025, the new finance minister announced earlier this week. 

Read more: France’s most popular regulated savings account to lower interest rate