Housing Savings Plan (PEL)
Verified 26 February 2024 - Directorate for Legal and Administrative Information (Prime Minister)
You want to save for buy a residential real estate ? You may be interested in the Home Savings Plan (HSP). This account is for the granting of loans to those who have saved for at least 4 years and which use their savings to finance dwellings for the main dwelling. The rules applicable to the ELP vary according to the opening date : from 2018 or before 2018. We present you with the information you need to know.
PEL opened from 2018
Anyone can open a PEL: there is no age, residence or nationality requirement.
If you are under legal protection (guardianship or trusteeship for example), this is your legal representative who has to open the account for you.
Warning
The ELP is reserved for natural persons. It is therefore not possible to open a PEL for an association or a business.
You can open a PEL in all banks that have signed an agreement with the government.
These banks undertake to respect the operating rules of the ELP.
But if you already have a home savings account (CEL), you must subscribe to the PEL in the bank where you already have the CEL. Indeed, the ELP and the EL must be held in the same establishment.
To open the PEL, you must sign a written contract with the bank.
No. You have the right to a single PEL. It is prohibited to hold several PELs at the same time.
There may be multiple PELs in your tax shelter, but within the limit of one ELP per household member.
Yes, you can combine the PEL with other regulated savings products (booklet A, sustainable and inclusive development booklet, popular savings book, etc.).
FYI
If you already have a home savings account (CEL), you must subscribe to the PEL in the bank where you already have the CEL.
Initial deposit
When opening the account, you must make a payment for a minimum amount of €225.
You can pay this amount to the account by wire transfer, check, or cash if your bank accepts the cash deposit.
Periodic Payments
You must pay a minimum of €540.
You can make periodic payments (monthly, quarterly, or semi-annual). That is specified in the contract.
In general, the amounts of periodic payments are as follows:
- €45 per month
- or €135 by Quarter
- or €270 by semester
Payment can be made by wire transfer, check or cash if your bank accepts the cash deposit.
Warning
If you do not comply with the payment terms of the contract, your ELP will be closed.
Other payments
You can also make other payments (known as one-time payments) in addition to periodic payments.
You choose the amount of these payments, but they must not result in the ELP ceiling being exceeded.
The maximum amount you can contribute to the ELP is €61,200.
The balance of the ELP may exceed this ceiling following the addition of interest.
The interest rate of the PEL is fixed at the opening of the account.
It is:
- 2.25% for ELPs open from 1er January 2024,
- 2% for ELPs open between 1er January 2023 and December 31, 2023
- 1% for ELPs open between 1er August 2016 and December 31, 2022.
The interest is calculated by fortnight. The interest for the first fortnight is calculated on the 16th of the month, and the interest for the second fortnight is calculated on the 1ster of the following month.
The interest is capitalizable. This means that as of December 31 of each year, interest is added to the capital already saved to generate additional interest the following year.
Since 2018, interest received from the ELP is subject to income tax and social security contributions.
When interest is paid, the banking institution must first make a lump-sum non-discharge payment of 12.8%, which is an income tax deposit.
The following year, you have to file a tax return that will allow the tax authority to calculate your final tax.
The administration will apply thethe single flat-rate levy your income from movable capital, including your ELP interests.
This levy corresponds to income tax, up to 12.8%and social security contributions, up to 17.2%.
But you can opt for the progressive income tax scale. This option to be applied to the progressive income tax schedule is irrevocable and applies to all your income from movable property.
In this case, all your income from movable capital will be taxed according to the composition of your tax household and according to your total income.
Your income tax rate may be lower or higher than the flat rate of 12.8%.
You will then be able to pay additional taxes or, on the contrary, receive a refund from the administration.
The payroll tax rate will always be 17.2%.
FYI
the bank must provide you each year with a statement that shows the amount of interest generated by your PEL and the amount of the non-final lump sum levy that it has made.
The ELP is concluded for a minimum duration of 4 years.
After 4 years, the ELP may be extended from year to year until the maximum duration of 10 years.
The bank must inform you one month before the deadline and you must reply within 5 working days.
The extension shall entail the continuation of the plan under the same conditions as when it was opened.
After Due Date, you can no longer make payments to the ELP, but will continue to generate interest for five years.
After 5e year after the due date, your PEL is automatically transformed into a classic savings book.
He continues to earn interest, but at the rate set by the bank and not at the rate set in the contract.
When the plan expires, you can apply for a loan or assign your loan rights to a family member.
The credit institution may also close the ELP.
You can withdraw the money from the ELP, but after the due date of the plan.
The contract due date can be the original due date or the due date set after the contract extension.
The original ELP maturity date is 4e anniversary of account opening.
In case of extension of the contract after 4e birthday, the due date is moved to the next anniversary date.
Thus, the due date can be 5e, on 6e, on 7e, on 8e, on 9e or 10e anniversary of account opening.
The early withdrawal is that which is made before the expiry of the ELP.
It results in the closing of the account.
Early withdrawal can have other consequences, which vary depending on when the withdrawal is made.
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Before 2 years
After closure, interest will be recalculated at CEL rate in force at the balance sheet date and you won't be able to take out a home savings loan.
Between 2 and 3 years
After closing, you will retain the benefit of the ELP rate of pay, but you will not be able to benefit from a home savings loan.
Between 3 and 4 years
After closing, you will keep the benefit of the PEL rate of pay for 3 years, but you will not be able to benefit from the maximum amount of home savings loan.
After 4 years
Withdrawal after the 4th year of the ELP does not incur penalties, and you retain your loan rights for 1 year.
When your PEL has expired, you can get a home loan on certain terms.
Loan saves housing can be used to do any of the following:
- Purchase of the main residence (new or old)
- Construction of the main residence (land purchase and construction work)
- Expansion, repair or improvement of the main residence (elevation, energy saving, facade renovation of a condominium building...)
- Acquisition of shares in residential civil real estate investment businesses (CREPS)
- Financing of premises for commercial or professional use which also includes the principal residence
FYI
the real estate concerned must be located in metropolitan France, in the overseas departments (Guadeloupe, Martinique, French Guiana, Reunion), in Saint-Pierre-et-Miquelon, in New Caledonia, in French Polynesia or in Mayotte.
You can add the loan entitlements generated by a family member's PEL to your own loan entitlements, if both plans have expired.
To do this, your family member must give you his rights on loan.
This may allow you to get a larger loan.
You can also assign your loan rights to family members.
If your plan and the plan of your family member are not domiciled in the same bank, the loan must be granted by the bank that holds the plan with the highest amount of interest earned.
The members of your family to whom you can assign your loan rights or receive loan rights are:
- Your spouse
- Your children or your spouse's children
- Your grandchildren or your spouse's grandchildren
- Your parents or your spouse's parents
- Your grandparents or your spouse's grandparents
- Your siblings and their spouses or your husband/wife's siblings
- Your nephews and nieces or your spouse's nephews and nieces
- Your uncles and aunts or your husband's uncles and aunts
The amount of the home equity loan varies depending on the duration of the plan and the interest you have earned, but it cannot exceed €92,000.
The home savings loan may take the form of a real estate loan or a work loan, which is a consumer credit.
It is a consumer credit if the loan amount is less than or equal to €75,000, and a mortgage if the amount of the loan exceeds €75,000.
The loan rate shall be fixed as soon as the plan is opened.
It is:
- 3.45% for ELPs open from 1er january 2024
- 3.2% for ELPs open between 1er January 2023 and December 31, 2023
- 2.2% for ELPs open between 1er January 2018 and December 31, 2022
PELs open from 1er January 2018 no longer qualify for the State premium.
It is possible to transfer your PEL to another bank while retaining the advantages acquired in the old bank: the age of the plan, interest rates and loan entitlements.
But the bank that holds the PEL may refuse the transfer.
In this case, you must close the old PEL and open a new one with the new bank.
If the bank holding the PEL accepts the transfer, it may charge you a transfer fee. These fees vary from one establishment to another.
It is also possible to transfer your PEL to a member of your family (child, grandchild, but also spouse, brother, sister, mother, father, uncle, aunt, nephew, niece...).
But the person to whom you transfer the plan must not already have an ELP.
The situation varies depending on whether the ELP is less than 10 years old or more than 10 years old.
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The ELP is less than 10 years old
The death of the PEL holder shall normally lead to the closure of the plan.
But an heir to the holder can take over the plan if the ceiling has not yet been reached.
The heir who takes over the ELP must undertake to respect all the commitments of the deceased (make the periodic payments).
The heir who already had a PEL open in his name before the death can keep it at the same time as the one he received by succession.
FYI
if no heir takes over the ELP, it is closed.
The ELP is more than 10 years old
The PEL which has come to an end on the death of the holder shall be closed and its amount shown on the assets side of the estate.
The ELP may be subject to a administrative seizure by third party holders.
The ELP may also be subject to a attachment and assignment.
You may decide to close your PEL at any time, but the bank may also close your PEL in certain cases.
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Closing at your initiative
If you want to close your PEL, you must make a request to the bank, according to the procedure laid down in the contract: by e-mail, by post or on the spot.
The closure of the ELP may cause you to lose some of the benefits associated with the plan: interest capitalization, home loan rights...
Closure at the initiative of the bank
The bank can close your PEL if you do not comply with the conditions of the plan.
The bank can close your PEL if you do not make the required periodic payments, or if the total of these periodic payments does not reach the amount of €540 per year.
The bank can also close your PEL if you make a withdrawal before 3e anniversary of the plan's opening date.
The bank can also close your PEL if the account balance exceeds the regulatory limit of €61,200.
PEL opened before 2018
No. You have the right to a single PEL. It is prohibited to hold several PELs at the same time.
There may be multiple PELs in your tax shelter, but within the limit of one ELP per household member.
Yes, you can combine the PEL with other regulated savings products (booklet A, sustainable and inclusive development booklet, popular savings book, etc.).
FYI
If you already have a home savings account (CEL), you must subscribe to the PEL in the bank where you already have the CEL.
You must pay a minimum amount of €540 within a year.
You must make periodic payments, the amount of which is fixed by the contract as follows:
- €45 per month
- or €135 by Quarter
- or €270 by semester
You can also make other payments in addition to periodic ones.
You can no longer make a payment when the ceiling is reached.
The maximum amount you can contribute to the ELP is €61,200.
The balance of the ELP may exceed this ceiling following the addition of interest.
The rate of pay shall be fixed at the opening of the ELP.
Opening date | Rate |
|---|---|
Between July 1999 and May 2000 | 2.61% |
Between June 2000 and July 2003 | 3.27% |
Between August 2003 and January 2015 | 2.5% |
Between February 2015 and January 2016 | 2% |
Between February 2016 and July 2016 | 1.5% |
From 1er august 2016 to december 31, 2017 | 1% |
The interest is capitalizable. This means that as of December 31 of each year, interest is added to the capital already saved to generate additional interest.
Interest from the ELP may be exempt from income tax and social security contributions, according to rules that vary according to the date of opening and the age of the plan.
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PEL opened before 1 March 2011
Income tax
Interest for the first 12 years of the ELP is exempt from income tax.
From 13e interest from the ELP is subject to income tax.
Social security contributions
Social security contributions for the first 10 years are levied for the first time at the 10e anniversary of the plan, or at closure, if earlier.
From 11e each year, social security contributions are levied at the rate in force.
The rate of social security contributions, since the 1er january 2018, is 17.2% .
PEL opened since 1 March 2011
Income tax
Interest for the first 12 years of the ELP is exempt from income tax.
From 13e interest from the ELP is subject to income tax.
Social security contributions
Social security contributions are due annually on interest.
The rate of social security contributions, since the 1er january 2018, is 17.2%.
Minimum Duration
The ELP is concluded for a minimum duration of 4 years.
Maximum Duration
After 4 years, the ELP may be extended from year to year until the maximum duration of 10 years.
The bank must inform you one month before the deadline and you must reply within 5 working days.
The extension shall entail the continuation of the plan under the same conditions as when it was opened.
If the contract is extended after 4 years, you can make payments on the PEL until the new due date, which cannot exceed 10e plan anniversary.
The fate of the expired plan depends on when it was opened.
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PEL opened before 1 March 2011
You can no longer make payments after the due date, but your PEL continues to earn interest at the rate set in the contract. for an unlimited period.
PEL opened after 1 March 2011
You can no longer make payments after the due date, but your PEL continues to to earn interest for five years, at the rate laid down in the contract.
After 5e year after the maturity date, your PEL is automatically transformed into a classic savings book.
He continues to earn interest, but at the rate set by the bank and not at the rate set in the contract.
You can withdraw the money from the ELP, but after the due date of the plan.
The contract due date can be the original due date or the due date set after the contract extension.
The original ELP maturity date is 4e anniversary of account opening.
In case of extension of the contract after 4e birthday, the due date is moved to the next anniversary date.
Thus, the due date can be 5e, on 6e, on 7e, on 8e, on 9e or 10e anniversary of account opening.
The early withdrawal is that which is made before the expiry of the ELP.
It leads to the closure of the account and other consequences, which vary depending on when the withdrawal is made.
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Before 2 years
After closure, interest will be recalculated to CEL rate in force at the balance sheet date and you won't be able to take out a home savings loan.
Between 2 and 3 years
After closing, you will keep the benefit of the ELP rate of payHowever, you will not be able to benefit from a home savings loan.
Between 3 and 4 years
After closing, you will keep the benefit of the PEL rate of pay for 3 years, but you will not be able to benefit from the maximum amount of home savings loan.
For ELPs opened before 2018, the amount of the State premium is reduced by half.
After 4 years
Withdrawal after 4 years of the ELP does not entail a penalty.
But if the withdrawal is made on a PEL that has been opened before 1er April 1992, the benefits of the plan are limited to the 4-year period.
When your PEL has expired, you can get a home loan on certain terms.
The loan may be used to carry out different operations after the date of opening of the ELP.
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PEL opened before 1 March 2011
The home savings loan can be used to do one of the following:
- Purchase of the main residence (new or old)
- Construction of the main residence (land purchase and construction work)
- Expansion, repair or improvement of the main residence (elevation, energy saving, facade renovation of a condominium building...)
- Acquisition or subscription of shares of SCPI (civil residential real estate investment Businesses)
- Construction or acquisition of a secondary residence (in the new)
- Renovation or extension of a secondary residence
- Acquisition of a residence for leisure or tourism
FYI
the real estate concerned must be located in metropolitan France, in the overseas departments (Guadeloupe, Martinique, French Guiana, Reunion), in Saint-Pierre-et-Miquelon, in New Caledonia, in French Polynesia or in Mayotte.
PEL opened after 1 March 2011
The home savings loan can be used to do one of the following:
- Purchase of the main residence (new or old)
- Construction of the main residence (land purchase and construction work)
- Expansion, repair or improvement of the main residence (elevation, energy saving, facade renovation of a condominium building...)
- Acquisition or subscription of shares of SCPI (civil residential real estate investment Businesses)
- Construction or acquisition of a secondary residence (in the new)
- Renovation or extension of a secondary residence
- Acquisition of a residence for leisure or tourism
FYI
the real estate concerned must be located in metropolitan France, in the overseas departments (Guadeloupe, Martinique, French Guiana, Reunion), in Saint-Pierre-et-Miquelon, in New Caledonia, in French Polynesia or in Mayotte.
You can add the loan entitlements generated by a family member's PEL to your own loan entitlements, if both plans have expired.
To do this, your family member must give you his rights on loan.
This may allow you to get a larger loan.
You can also assign your loan rights to family members.
If your plan and the plan of your family member are not domiciled in the same bank, the loan must be granted by the bank that holds the plan with the highest amount of interest earned.
The members of your family to whom you can assign your loan rights or receive loan rights are:
- Your spouse
- Your children or your spouse's children
- Your grandchildren or your spouse's grandchildren
- Your parents or your spouse's parents
- Your grandparents or your spouse's grandparents
- Your siblings (and their husbands/wives) or your husband/wife's siblings
- Your nephews and nieces or your spouse's nephews and nieces
- Your uncles and aunts or your husband's uncles and aunts
The amount of the home equity loan varies depending on the duration of the plan and the interest you have earned, but it cannot exceed €92,000.
The home savings loan may take the form of a real estate loan or a work loan, which is a consumer credit.
It is a consumer credit if the loan amount is less than or equal to €75,000, and a mortgage if the amount of the loan exceeds €75,000.
The loan rate shall be fixed as soon as the plan is opened.
It varies according to the opening date of the plan.
Opening date | Rate |
|---|---|
From 1er july 1985 to 15 may 1986 | 6.45% |
From 16 May 1986 to 6 February 1994 | 6.32% |
From 7 July 1994 to 22 January 1997 | 5.54% |
From 23 January 1997 to 08 June 1998 | 4.80% |
From 9 June 1998 to 25 July 1999 | 4.60% |
From 26 July 1999 to 30 June 2000 | 4.31% |
From 1er July 2000 to 31 July 2003 | 4.97% |
From 1er August 2003 to January 31, 2015 | 4.20% |
From 1er february 2015 to january 31, 2016 | 3.20% |
From 1er february 2016 to july 31, 2016 | 2.70% |
From 1er august 2016 to december 31, 2017 | 2.20% |
In addition to the home savings loan, the ELP opened before 2018 can allow you to to obtain, under certain conditions, a State premium.
This premium may be increased in certain cases.
The premium surcharge is called a premium surcharge.
If you claim the government premium, the credit institution that holds your PEL must forward the request to the Business of Management of Financing and Guarantee of Social Accession to Property (SGFGAS).
The request should be accompanied by information allowing the administration to verify that you do not have more than one PEL.
This information includes the following:
- Your name, first name and date of birth
- The code of your municipality of birth (INSEE code if it is a French municipality)
- The number of your PEL
- The opening date of your ELP
- The amount of the State premium and the amount of the loan
- The closing date of your ELP
- The amount of the surcharge and the number of your dependants (if you claim the surcharge)
FYI
the State premium and the additional premium are exempt from income tax, but taxable in the form of social security contributions.
The credit institution must provide you with the information it has sent to the department responsible for examining the request.
This information is subject to processing of personal data and may be retained for up to 4 years after the last installment of the State premium has been paid.
You have a right of access to your personal data, and you can request, if necessary, the correction of errors.
But you cannot request the erasure of the data before the 4-year period.
The conditions for granting the State premium and the premium surcharge vary according to the date of opening of the ELP.
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PEL opened between August 2016 and December 2017
The State premium is paid only if the ELP interest entitles you to a €5,000 minimum.
The amount of the premium corresponds to 100 % of the interest earned, but does not exceed €1,000.
The premium is increased according to family expenses.
The increase is 10% of the amount of interest earned, with a ceiling of €100 per dependent. The ceiling shall be raised to €153 where the property project financed is an energy performance project.
PEL opened between February and July 2016
The State premium is paid only if the ELP interest entitles you to a €5,000 minimum.
The amount of the premium corresponds to 2/3 of the interest earned, without exceeding €1,000.
The premium is increased according to family expenses.
The increase is 10% of the amount of interest earned, with a ceiling of €100 per dependent. The ceiling shall be raised to €153 where the property project financed is an energy performance project.
PEL opened between February 2015 and January 2016
The State premium is paid only if the ELP interest entitles you to a €5,000 minimum.
The amount of the premium is 50% vested interests, but not exceeding €1,000.
The ceiling of the premium shall be increased to €1,525 whether the housing project financed is an energy performance project.
ELP opened between March 2011 and January 2015
The State premium is paid only if the ELP interest entitles you to a €5,000 minimum.
The amount of the premium is 40% vested interests, but not exceeding €1,000.
The ceiling of the premium shall be increased to €1,525 whether the housing project financed is an energy performance project.
ELP opened between 13 December 2002 and 28 February 2011
The state premium is paid if the ELP interest entitles you to a mortgage, regardless of its amount.
The premium is integrated into the ELP interest rate. Its amount shall not exceed €1525.
The amount of the premium may not be increased.
PEL open until 12 December 2002
The State premium is paid without conditions.
The premium is integrated into the ELP interest rate. Its amount shall not exceed €1525.
The amount of the premium may not be increased.
It is possible to transfer your PEL to another bank while retaining the advantages acquired in the old bank: the age of the plan, interest rates and loan entitlements.
But the bank that holds the PEL may refuse the transfer.
In this case, you must close the old PEL and open a new one with the new bank.
If the bank holding the PEL accepts the transfer, it may charge you a transfer fee. These fees vary from one establishment to another.
It is also possible to transfer your PEL to a member of your family (child, grandchild, but also spouse, brother, sister, mother, father, uncle, aunt, nephew, niece...).
But the person to whom you transfer the plan must not already have an ELP.
The situation varies depending on whether the ELP is less than 10 years old or more than 10 years old.
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The ELP is less than 10 years old
The death of the PEL holder shall normally lead to the closure of the plan.
But an heir to the holder can take over the plan if the ceiling has not yet been reached.
The heir who takes over the ELP must undertake to respect all the commitments of the deceased (make the periodic payments).
The heir who already had a PEL open in his name before the death can keep it at the same time as the one he received by succession.
FYI
if no heir takes over the ELP, it is closed.
The ELP is more than 10 years old
The PEL which has come to an end on the death of the holder shall be closed and its amount shown on the assets side of the estate.
The ELP may be subject to a administrative seizure by third party holders.
The ELP may also be subject to a attachment and assignment.
The seizure results in the loss of the right to the home savings loan.
You may decide to close your PEL at any time, but the bank may also close your PEL in certain cases.
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Closing at your initiative
If you want to close your PEL, you must make a request to the bank, according to the procedure laid down in the contract: by e-mail, by post or on the spot.
Closure at the initiative of the bank
The bank can close your PEL if you do not comply with the conditions of the plan.
The bank can close your PEL if you do not make the required periodic payments, or if the total of these periodic payments does not reach the amount of €540 per year.
The bank can also close your PEL if the account balance exceeds the regulatory limit of €61,200.
Who can help me?
Find who can answer your questions in your region
Credit institution concerned (Article L315-3)
Contract (Article R315-25), beneficiary (Article R315*-26), payments (Article R315*-27), duration (Article R315*-28), rate (Article R315*-29), closure (Articles R315*-31 and R315*-32)
Exemption from income tax for the interest fraction and the savings premium (Article 157)
Supervisory and Resolution Authority (ACPR)
Institute for Public Financial Education (IEFP)