What are the differences between a PEL and a CEL?

Verified 01 August 2023 - Directorate for Legal and Administrative Information (Prime Minister)

The Home Savings Plan (HSP) and the Home Savings Account (HSA) are savings products.

They can allow you to get a favorable loan (and sometimes a state premium) to finance the purchase of a property or to carry out work.

But there are differences between these two devices. We present them to you.

For saving

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The account was opened after 2018

Tableau - Comparison between a PEL and a CEL as a savings product

PEL

CEL

Initial payment

€225

€300

Ceiling

€61,200

€15,300

Interest rates

1%

Attention: the ELP rate has increased to 2% for plans open from 1er January 2023.

2%

Periodicity of payments

Regular payments 

  • of €45 per month
  • or €135 by Quarter
  • or €270 by semester

    • Free payments of at least €75

    Possibility of partial withdrawal of funds

    No: a withdrawal leads to the closure of the ELP, which can however be transformed into an ELC

    Yes, provided that the balance of the account is at least

    €300 after withdrawal.

    Taxation

    Interest taxable on income tax and social security contributions

    Interest taxable on income tax and social security contributions

    The account was opened between August 2016 and end 2017

    Tableau - Comparison between a PEL and a CEL as a savings product

    PEL

    CEL

    Initial payment

    €225

    €300

    Ceiling

    €61,200

    €15,300

    Remuneration

    1%

    2%

    Periodicity of payments

    Regular payments 

  • of €45 per month
  • or €135 by Quarter
  • or €270 by semester

    • Free payments of at least €75

    Possibility of partial withdrawal of funds

    No: a withdrawal leads to the closure of the ELP, which can however be transformed into an ELC

    Yes, provided that the balance of the account is at least

    €300 after withdrawal.

    Taxation

    • PEL under 12 years : interest exempt from income tax but subject to social security contributions
    • PEL over 12 years : interest taxable on income tax and social security contributions

    Interest exempt from income tax, but subject to social security contributions

    For the loan

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    The account was opened in 2018

    Tableau - Comparison between an ELP and an LEC as borrowed product

    PEL

    CEL

    Time to borrow

    4 years

    18 months

    (provided you have accumulated a certain interest value)

    Maximum loan

    €92,000

    €23,000

    Length of loan

    2 to 15 years

    2 to 15 years

    Interest rate

    1%

    2%

    What to finance with this loan?

    • Purchase or construction of their primary (or secondary if new) residence
    • Certain improvements, extensions or repairs

    The account was opened between August 2016 and end 2017

    Tableau - Comparison between an ELP and an LEC as borrowed product

    PEL

    CEL

    Time to borrow

    4 years

    18 months

    (provided you have accumulated a certain interest value)

    Maximum loan

    €92,000

    €23,000

    Length of loan

    2 to 15 years

    2 to 15 years

    Interest rate

    1%

    2%

    Maximum State premium

    €1,000

    €1,144

    What to finance with this loan?

    • Purchase or construction of their primary (or secondary if new) residence
    • Certain improvements, extensions or repairs

    Who can help me?

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