Why tax authorities advise emptying your bank account before the end of October

It’s one of those quiet little financial habits that can cost you far more than you realise: leaving too much money lounging around in your current account. It might feel like the safest, simplest place for your cash — but in reality, it’s a missed opportunity. And with a key deadline approaching at the end of October, now’s the time to act if you want to make your money work a little harder.

Why keeping money in your current account is a losing game

In many European countries, current accounts come with interest — even if just a sliver. Not so in France. Here, banks aren’t required to pay a single cent in return for holding your cash. This goes back to an old agreement: in exchange for free cheque books, banks were allowed to offer zero interest on current accounts. Cheques may be disappearing, but the outdated rule still stands.

So what happens when you leave your money sitting idle? For starters, you’re earning nothing. Worse, you’re likely losing money thanks to account fees, overdraft charges and inflation nibbling away at your purchasing power. Meanwhile, the bank isn’t just sitting on your savings. They’re putting your capital to work behind the scenes — and reaping the rewards.

Of course, you’ll want a buffer in your current account for everyday expenses — about a month’s salary is the common rule of thumb. But beyond that? It’s probably time to move it.

The smarter home for your cash

Interest rates are finally on the up after years in the doldrums — which is bad news for borrowers but a potential win for savers. Since February, savings products like the Livret A and the LDDS have been offering a tidy 3% annual interest rate — and that’s net, with no tax or social contributions taken off.

The best part? These savings accounts are 100% state guaranteed, with no risk to your capital. They’re also liquid, meaning you can dip into them anytime — handy if your car breaks down or your boiler throws a tantrum mid-winter.

It’s no surprise that financial advisors (and even tax officials) are urging people to stop letting their money gather dust in current accounts and start using these tools — especially when the alternatives are so safe and accessible.

Why the end of October matters

Here’s where the timing comes in. French savings accounts like the Livret A follow a rather fussy but important rule known as the fortnight rule. Interest is calculated twice a month — on the 1st and the 16th — and only on money that’s already in the account by those dates.

So, if you transfer your money into a savings account on, say, 2 November, it’ll just sit there doing nothing until 16 November. That’s over two weeks of potential interest, lost in the ether.

Which is why the advice is clear: if you’re planning to shift money from your current account to a savings product, do it before the end of October. That way, your balance will be fully counted for the interest calculation starting on 1 November — and you won’t miss out on a single day’s growth.

A small move with a long-term payoff

It’s not about draining your current account entirely or locking your money away for decades. It’s about being strategic with what you don’t need right now. Shifting idle funds into a high-interest, state-backed account could quietly earn you a few hundred euros a year — all while keeping your money just a few taps away if you need it.

So before October fades into November, take a few minutes to look at your balances. Your future self (and your bank account) will thank you.

Similar Posts

• Why you should urgently withdraw money from your current account
• 10,000€ on your savings account? Here’s why experts urge you not to exceed this limit
• How much cash can you legally keep at home under your mattress?
• Billions Sit Idle: Why the Government Is Eyeing Your Savings Like Never Before
• -0.5% from August: how much less your savings will earn by year’s end

Brandon Lee

Hi, I’m Brandon from the Decatur Metro team. I guide you through the trends and events reshaping our region.