Introduction: The LDDS, the Livret A's Natural Companion
The Livret de Developpement Durable et Solidaire (LDDS), formerly known as Codevi and then LDD, is the second most popular regulated savings account in France with nearly 25 million holders. Often considered the Livret A's "twin," it offers the same tax advantages but with a different ceiling. Since 2020, it also includes a solidarity dimension that lets savers give meaning to their money.
For English-speaking expats, the LDDS is essentially a second tax-free savings account that works identically to the Livret A but with a lower ceiling. It is an excellent complement once your Livret A is well-funded.
LDDS Rate and Return in 2026
A Rate Identical to the Livret A
The LDDS rate is automatically aligned with the Livret A rate. Since February 1, 2025, it has been set at 2.40% net. As with the Livret A, interest is fully exempt from income tax and social contributions.
Return simulation:
| Capital Invested | Annual Interest (2.40%) | Monthly Interest |
|---|---|---|
| 3,000 euros | 72 euros | 6 euros |
| 6,000 euros | 144 euros | 12 euros |
| 12,000 euros (ceiling) | 288 euros | 24 euros |
Fortnightly Interest Calculation
As with the Livret A, LDDS interest is calculated in fortnightly periods ("quinzaines") and credited on December 31 of each year. The same optimization rules apply: deposit your funds at the end of a fortnight and withdraw at the beginning of the next one.
Ceiling and Eligibility
12,000 Euro Ceiling
The LDDS deposit ceiling is set at 12,000 euros, nearly half that of the Livret A (22,950 euros). As with the Livret A, capitalized interest can push the balance above this threshold.
Eligibility Conditions
- Must be an adult: unlike the Livret A, the LDDS is not available to minors
- Must have tax residency in France
- One LDDS per person: but both members of a couple can each hold one
- No regulatory minimum deposit: though banks may require an initial deposit of 10 to 15 euros
Tip for couples: A couple can hold 2 Livrets A (45,900 euros) + 2 LDDS (24,000 euros), for a total of 69,900 euros in fully tax-exempt, instantly accessible regulated savings.
LDDS vs Livret A: What Are the Differences?
Many savers confuse the two products. Here is a clear comparison:
| Criterion | Livret A | LDDS |
|---|---|---|
| Rate | 2.40% net | 2.40% net |
| Ceiling | 22,950 euros | 12,000 euros |
| Minimum age | Birth | 18 years |
| Taxation | Tax-exempt | Tax-exempt |
| Number per person | 1 | 1 |
| Minimum deposit | 10 euros (regulatory) | Free (bank-dependent) |
| Solidarity dimension | No | Yes (since 2020) |
| Use of funds | Social housing, SMEs | Energy transition, social economy |
Which to Fill First?
The answer is straightforward: the Livret A first, because its ceiling is nearly twice as high. Then fill the LDDS. Both products offer exactly the same return and tax treatment.
The LDDS's Solidarity Dimension
Donating to the Social and Solidarity Economy
Since the Sapin 2 law of 2017, implemented in 2020, LDDS holders can make a donation to social and solidarity economy (ESS) organizations directly from their account. Your bank must offer a list of at least 10 approved ESS companies or associations to which you can direct a donation.
How Does It Work?
You can ask your bank to transfer all or part of your LDDS interest (or even principal) to an approved organization. This donation qualifies for a tax reduction:
- 66% of the amount for donations to organizations of general interest
- 75% of the amount for donations to organizations helping people in difficulty (within the applicable ceiling)
Example: Julie, 29, a designer in Lyon, earns 288 euros in interest on her LDDS at the ceiling. She decides to donate all of this interest to a solidarity association. Her 288-euro donation gives her a tax reduction of 190 euros (288 x 66%). Her actual cost is only 98 euros.
What Are LDDS Funds Used For?
The funds collected on LDDS accounts are partly centralized by the Caisse des Depots et Consignations (a public financial institution) and used to finance:
- The energy transition of buildings and housing
- Energy efficiency works in the residential sector
- Social and solidarity economy enterprises
- SMEs in their sustainable development projects
Strategies for Using the LDDS
1. Emergency Fund Complement
The LDDS is the ideal complement to the Livret A for building a complete emergency fund.
Antoine, 34, a sales manager in Strasbourg, has a net salary of 3,200 euros per month. For his emergency fund, he targets 6 months of expenses, roughly 15,000 euros. He filled his Livret A to 15,000 euros and placed the remaining 3,000 euros in his LDDS. When he wants to go further, he will continue filling the LDDS to the ceiling.
2. Short-Term Project Savings
The LDDS is perfect for saving toward a short-term project (travel, equipment, moving) while benefiting from a guaranteed return and total availability.
3. Giving Meaning to Your Savings
For savers sensitive to environmental and social issues, the LDDS offers a concrete way to contribute to the energy transition and solidarity economy while still earning interest.
Opening and Managing an LDDS
Where to Open an LDDS?
All banks (traditional and online) offer the LDDS. The conditions are strictly identical from one institution to another since it is a regulated product.
How to Transfer Your LDDS?
If you change banks, you can transfer your LDDS without closing it. The process is simple:
- Open an LDDS at your new bank
- Request a transfer of funds from the old to the new
- The old bank closes the account and makes the transfer
Note: during the transfer, interest for the current fortnight may be lost. Plan your transfer at the beginning of a fortnight to minimize the impact.
LDDS and Other Savings Accounts: The Optimal Strategy
The optimal regulated savings strategy in 2026 follows this priority order:
- LEP (if eligible): higher rate (3.50%), 10,000 euro ceiling
- Livret A: 22,950 euro ceiling
- LDDS: 12,000 euro ceiling
- Beyond that: fonds euros in life insurance or term deposits
Mathieu, 42, a teacher, and his partner Sarah, 38, a nurse, have optimized their regulated savings:
- 2 LEPs: 20,000 euros at 3.50% = 700 euros/year in interest
- 2 Livrets A: 45,900 euros at 2.40% = 1,101.60 euros/year in interest
- 2 LDDS: 24,000 euros at 2.40% = 576 euros/year in interest
- Total: 89,900 euros in tax-exempt savings generating 2,377.60 euros/year in net interest
Conclusion
The LDDS is a simple and effective product that naturally complements the Livret A. With its identical rate of 2.40% net, total availability, and solidarity dimension, it deserves a place in every saver's strategy. Remember to fill it after your Livret A, and if you are so inclined, use its solidarity feature to give meaning to your savings.
Disclaimer
The information presented in this article is provided for informational and educational purposes only. It does not constitute personalized investment advice. The rates mentioned are those in effect at the time of writing and are subject to change. Consult your bank or a financial advisor for any decisions regarding your savings.