2023-08-08 02:00:00
You may have heard of limits on savings accounts, but what regarding current accounts ? Is there a maximum amount you can have on your current account in France?
Current accounts and French legislation
In France, there are no specific regulations regarding the maximum amount that can be held in a current account. In other words, there is no limit imposed by law for the sums present in your bank account.
However, this does not mean that you can accumulate unlimited sums without consequences. Indeed, your bank can decide to fix a ceiling for amounts you may have in your account. This ceiling generally varies according to the type of clientele and the nature of the account (individual or professional).
Limits set by some banks
Banks have different reasons for setting a ceiling on their customers’ current accounts. One of the main reasons has to do with risk management: a bank may want to limit its own exposure to certain types of customers or transactions. In addition, banks may be subject to regulatory requirements regarding risk management and monitoring of their balance sheet.
It is therefore important to consult the general conditions of your bank to find out the maximum amount you can hold in your current account. This limit can vary considerably from one bank to another. and, in some cases, it can be negotiated with your bank advisor. In the same register, here is how much you can deposit in the bank without proof.
Do you know the maximum amount you can have in your current account?
Deposit guarantee in the event of bank failure
Although French law does not set a limit on the sums you can hold in a current account, it is essential to know the deposit guarantee scheme put in place by the French State in the event of the bankruptcy of a bank.
The Deposit and Resolution Guarantee Fund (FGDR)
In France, the protection of savers is ensured by the Deposit Guarantee and Resolution Fund (FGDR). This public body is responsible for compensating customers whose deposits are threatened due to the failure of their bank. The guarantee offered by the FGDR covers several types of accounts:
Current accounts Passbook accounts Term accounts Home savings plans (PEL) and equity savings plans (PEA) Sight deposits and term deposits
The maximum sum guaranteed by the FGDR
The FGDR guarantees compensation up to €100,000 per customer and per bank. It is important to note that this guarantee applies to all accounts held with the same bank, including joint accounts. In this case, each holder of the joint account benefits from the guarantee up to €100,000.
If you hold sums of more than €100,000 in a single bank, it may be wise to distribute these funds between several banking establishments in order to benefit from the guarantee for all of your savings..
Taxation on current account interest
Finally, it is essential to take into account the taxation of the interest generated by the sums present in a current account. Interest received on a current account is subject to income tax and social security contributions.
However, current account interest is usually not very high and in some cases can be tax exempt if certain conditions are met. However, it is best to consult a tax advisor to find out the tax implications of amounts held in your checking account.
In other words, in France you can theoretically have as much money as you want in a current account – there is no legal limit. But beware, it’s not that simple! Some banks may set their own limits, and there are rules like the FGDR deposit guarantee that may affect your money.
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