Sustainable and inclusive development booklet (LDDS)

Verified 04 January 2024 - Directorate for Legal and Administrative Information (Prime Minister)

Want to grow your savings securely and tax-free? You can open a booklet on sustainable and inclusive development (LDDS), formerly known as Codevi. It's an investment where the interest rate is set by the government, taking inflation into account. Your money remains available and you can withdraw if needed. We present you with the information you need to know.

Major

Any adult who has tax domicile in France can open a booklet of sustainable and solidarity development (LDDS).

Minor

A minor who is resident in France for tax purposes can open a booklet for sustainable development and solidarity, if he has personal income and is no longer attached to his parents' tax home.

It is forbidden to hold several LDDS at the same time. Indeed, the number of LDDS is limited to one per person, and to two per person tax shelter.

The bank that receives a request to open an LDDS must inform the customer of the prohibition to hold 2 LDDS and ask him whether he already holds an LDDS in another institution or not.

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The customer states that he does not have an LDDS in another establishment

If the customer declares that he does not hold SDS in another institution, the bank must inform him of the need to ask the tax administration about this.

In this case, the customer must inform the bank whether or not he accepts that the tax authorities communicate to the bank the information on the SDS that he could hold in other institutions (existence of the account, date of opening, amount of savings, etc.).

The bank cannot open the booklet until it has the answer from the tax authorities. This response must be given within a maximum of 2 working days.

The customer agrees that the tax authority will communicate the information to the bank

The situation varies depending on the nature of the information provided by the tax authorities.

The tax authority confirms that the customer does not hold an LDDS in another establishment

If the tax authority confirms that the customer does not hold SDS in another institution, the bank must open the booklet to the customer.

The tax authority reports that the customer has an LDDS in another establishment

If the tax authority informs the bank that the customer already has an LDDS in another institution, the bank must provide the information to the customer and ask the customer to choose one of the following 3 solutions:

  • Self-close existing LDDS
  • Allow the bank to complete the closing formalities of the already existing LDDS and transfer the funds to the new LDDS
  • Waive the request to open the new LDDS
The customer does not accept that the tax authority communicate the information to the bank

The customer cannot object to the tax authorities communicating to the bank information about the existence of other SDSs open on his behalf.

The situation varies depending on the nature of the information provided by the tax authorities.

The tax authority confirms that the customer does not hold an LDDS in another establishment

If the tax authority confirms that the customer does not hold SDS in another institution, the bank must open the booklet to the customer.

The tax authority reports that the customer has an LDDS in another establishment

The bank must refuse to open the LDDS and inform the customer of the reasons for the refusal.

The customer states that he holds an LDDS in another establishment

If the customer declares that he already holds an LDDS in another institution, the bank must not open a new booklet to him.

There is no minimum amount in the act.

However, most institutions require a down payment of €15.

Withdrawals and payments are free.

The bank can give you a debit card, but you can only use it at the ATMs on its network.

The operations carried out on the LDDS are free of charge: opening, deposit, withdrawal and closing.

You can contribute to your sustainable development and solidarity booklet by check, cash at the counter or by transfer from a demand account.

As of July 1, 2023, you can make a transfer to your LDDS from a bank account opened at a different bank than the one where the LDDS is located.

The LDDS ceiling is €12,000.

The cap can be exceeded when interest is added to your savings.

But when the balance of the booklet reaches the ceiling, or exceeds it, following the addition of interest, you can no longer make a deposit to the account.

Rate

The annual interest rate is 3%.

Calculation of interest

Interest is calculated on 1er and the 16th of each month.

The date of the value, taken into account for the calculation of interest, varies according to the date of the transaction (deposit or withdrawal):

Tableau - When is the interest calculated?

Type of operation

Operation performed before the 15th of the month

Operation performed from the 16th of the month

Deposit

16 of the same month

1er day of the following month

Withdrawal

Last day of previous month

15 of the month

The sums deposited bear interest if they are invested in whole fortnight.

On December 31 of each year, the interest accrued on the year is added to the capital. The addition of interest on December 31 may increase the value of the booklet beyond €12,000.

You can use the money saved on your LDDS to make a donation to a social and solidarity economy company.

The bank with which you have your booklet must offer you each year a list of at least 10 companies of the social and solidarity economy.

Once you have communicated the names of the selected companies and the amount of the donations, the bank can make the payment directly from your LDDS.

Banks must use the funds collected under the LDDS to grant loans to improve the energy performance of housing at attractive rates.

What work is eligible?

This involves energy-saving work carried out in individual or collective dwellings that are used as main or secondary dwellings, or that are rented out.

Example :

Thermal insulation materials, temperature control apparatus, power generation apparatus

It is the banks that check the eligibility of the works based on the quotes.

Beneficiaries

You don't need an LDDS to qualify for the Sustainable Development Loan.

This loan can be granted to individuals, condominiums and construction professionals to carry out certain work.

Amount, rate and duration of the loan

The banks are free to set the amount and duration of the loan, depending on the nature of the work and the creditworthiness of the borrower.

They have an obligation to offer attractive rates, but there are no government-imposed rates.

The conditions for granting the loan may therefore vary from one bank to another.

Interest shall be exempt from income tax and social security contributions.

To close your LDDS, by simple letter or by traveling to your bank, you must specify the following information:

  • LDDS References
  • Account number where the amounts remaining on the booklet are to be deposited

If the LDDS is closed during the year, interest on the period since the beginning of the year is credited to the closing day.

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