PEL 2023. According to the Minister of the Economy Bruno Le Maire, the rate of the housing savings plan will double on 1 January. A first for 22 years.
[Mis à jour le 8 décembre 2022 à 16h36] Good news for French savers! The rate of remuneration of the housing savings plan (PEL) will double! Indeed, it will go from 1% to 2% starting the January 1, 2023 announced the Minister of the Economy Bruno Le Maire this Thursday, December 8. The first rise for 22 years. “This 2% rate will apply to newly opened PELs in 2023 and will therefore not concern the stock of existing PELs” also declared the Minister.
As a reminder, thehe PEL is a regulated remunerated savings whose funds are blocked for at least 4 years. Once the minimum savings phase has passed, it opens the rights to a loan and a state bonus (read below), to finance the purchase or construction of a home, or the carrying out of work. Any natural person, adult or minor, can open a PEL. An initial payment of at least 225 euros is required for subscription. You must then make periodic payments up to a minimum of 540 euros per year.
The minimum savings period is contractually set at 4 years. Any withdrawal before this deadline results in the automatic closure of the Housing Savings Plan (read below). After 4 years, the PEL can be automatically extended from year to year, until the maximum duration of 10 years. After these ten years of operation, it is no longer possible to make payments. But the PEL continues to generate interest until the 15e year. At the end of this 15e year, the Home Savings Plan is automatically transformed into a classic savings account if no loan or closing request has been made by its holder. The right to a loan and to a bonus are then lost. This provision applies to PELs opened since 1er March 2011. PELs opened before the debt date can remain open without time limit.
If there are minimum conditions for the payments, these are also capped. The maximum amount that can be placed on a PEL is 61,200 euros. A much higher ceiling than on other secure savings (15,300 euros for a CEL, 22,950 euros for a Livret A). In addition, in the same way as for a CEL or a savings account, interest can bring the balance of the PEL beyond this limit.
The rate of return for the Housing Savings Plan is set when it opens. Its remuneration is therefore guaranteed for its entire lifespan., unlike a savings account, the rate of which may be revised several times a year. Here is the detail of the evolution of the performance of the PEL, since 2003:
| ELP opening date | Remunerative rate applied |
|---|---|
| From 1er August 2003 to January 31, 2015 | 2.5% |
| From 1er February 2015 to January 31, 2016 | 2.0% |
| From 1er February 2016 to July 31, 2016 | 1.5% |
| Since 1er August 2016 | 1.0% |
PELs opened before January 31, 2016 therefore offer a remuneration of 2%, while PELs opened since 1er August 2016 show a return of 1%. The remuneration should drop to 2% from January 1, 2023, for any PEL opened from this date.
In the same way as for the CEL or a Livret A, PEL interest is most often calculated fortnightly. A payment made between 1er and the 15e day of the month bears interest on the following fortnight, ie from the 16th. Withdrawals are accounted for in the calculation of interest from the fortnight preceding the operation. As for the CEL, the interests are capitalized. This means that on December 31, they are added to the capital saved and in turn produce interest.
Since 1er January 2018 and the entry into force of single lump sum direct debit, all PELs are taxed for the interest they generate. The saver can however choose between taxation to the PFU of 30% and taxation at the progressive scale of theincome tax. However, the benefit of the exemption for the first 12 years remains valid for all plans opened before the entry into force of the PFU.
It is possible to simulate the creation of savings on different bank sites. Several brands (Crédit Mutuel, Société Générale, Crédit Agricole, etc.) have developed tools to view savings, including payments and accrued interest, according to scheduled payments and expected savings time. Some calculators even tell you the amount of the premium to which you would be entitled, as well as the loan you could obtain.
Once the savings have been released, after the first four years, several choices are available to the holder of a PEL. He can decide to continue to fund his account, to let the interest run, or to apply for a home savings loan. It is possible to obtain a loan at a guaranteed rate for up to one year after the closure of the Housing Savings Plan. This loan can be used for the purchase or construction of real estate, if it is intended to be the saver’s main residence. But it can also be contracted for the purpose of finance worksalways for a main residence.
In general, the loan is contracted in the bank where the PEL was subscribed. But it is possible to go see the competition, if you meet the conditions imposed by a new bank. This may require certain guarantees, such as a bank guarantee or a house mortgage. It may also require you to take out insurance. On the other hand, it cannot in any way require you to domicile your income with it.
In all cases, the amount and duration of the loan granted depend on the interest earned during the savings period. The amount of this loan is capped at 92,000 euros and can be spread over 2 to 15 years. Its interest rate depends on the period during which the PEL was opened. Here is the detail, depending on the date of subscription:
| ELP opening date | Home savings loan interest rate |
|---|---|
| Between May 16, 1986 and February 7, 1994 | 6.32% |
| Between February 7, 1994 and January 22, 1997 | 5.54% |
| Between January 23, 1997 and June 9, 1998 | 4.80% |
| Between June 9, 1998 and July 25, 1999 | 4.60% |
| Between July 26, 1999 and June 30, 2000 | 4.31% |
| Between 1er July 2000 and July 31, 2003 | 4.97% |
| Between 1er August 2003 and January 31, 2015 | 4.20% |
| Between 1er February 2015 and January 31, 2016 | 3.20% |
| Between 1er February 2016 and July 31, 2016 | 2.70% |
| Since 1er August 2016 | 2.20% |
The performance of your Home Savings Plan can be boosted by a state bonus. The conditions for granting this bonus have changed over time. It is therefore necessary to distinguish several situations:
- If your PEL was taken out between August 2003 and February 2011, the premium is paid only if the PEL gives rise to a home loan. Its amount is 40% of the interest paid by the bank. It cannot exceed 1,525 euros.
- If your PEL was taken out between March 2011 and December 2017, the premium is paid only if the PEL gives rise to a home loan of at least 5,000 euros. It cannot exceed 1,000 euros.
- If your PEL has been subscribed since January 1, 2018, the State bonus can no longer be granted to you.
Regarding its amount, your premium also depends on the date of subscription of the PEL, as well as the interest acquired at its term. Here is the amount you can expect to get, based on these two parameters:
| ELP opening date | Premium value |
|---|---|
| Between March 1, 2011 and January 31, 2015 | 40% of accrued interest |
| Between 1er February 2015 and January 31, 2016 | 50% of interest earned |
| Between 1er February and July 31, 2016 | 2/3 of interest earned |
| Since 1er August 2016 | 100% interest earned |
As explained upper, any withdrawal of funds made before the fourth anniversary of the PEL entails its closure. Different provisions are then applied, depending on the savings time:
- if the closure occurs before the 2-year period, the interest is recalculated according to the rate of the CEL in force. The rights to the loan and to the State bonus are then lost;
- if the closing takes place between the 2e and the 3e year, the interest is kept at the PEL rate, but the rights to the loan and the premium are lost;
- if the PEL is closed between its 3e and its 4e year, the remunerative rate is maintained, but the rights to the loan and the premium are reduced.