Plan Epargne Logement
Regular saving is a great way to provide a cash sum later in life
Whether it's putting something away for a special anniversary, the holiday of a lifetime or perhaps to help pay for your child or grandchild's future university costs, Britline Regular Savings Plans are the simple way to make the most of tomorrow.
It's good to know there is a secure way to save!
The "Plan Epargne Logement" deposit account is a regulated savings account. Funds can be used towards the finance of a property purchase* with the possibility of obtaining a loan with a favourable interest rate.
Available to residents and non residents. Any private individual without an existing "Plan Epargne Logement" (PEL) or a "Compte Epargne Logement" (CEL) in any other bank. Available to adults and young people*
- Level of capital protection: 100% at all times
- Funds can be accessed but the account must be closed
- Interest rate: 1.00% fixed for the term of the contract(1)
- Fees: Free of charge
- Taxation of interest: Yes, after 12 years(2)
- Subscription conditions: That you do not already hold a CEL or PEL in another bank or a product combining a PEL(2)
- Minimum opening deposit: 225 €
- Maximum Investment Amount: 61,200 €
- Regular minimum deposits from: 45 €
- Recommended investment period: Minimum 4 years
How does it work?
The Plan Epargne Logement requires a minimum investment over four years, paid at a preset rate, which has a regular savings commitment. It allows you, after 2 years, to apply for a home loan for a primary residence (home loan or personal loan) at a guaranteed rate known in advance. The PEL can not receive deposits after 10 years maximum. In the absence of withdrawal of funds, it is transformed into a savings account "Compte Sur Livret" (CSL) 5 years after coming to term (the borrowing rights and bonus are lost ).
Regular and attractive savings
- You can save up to 61,200 € over a period of at least 4 years.
- You make an initial payment of 225 € and you agree to pay a minimum of 540 € per year depending on the pace of regular payments that suits you: Monthly (minimum 45 €), quarterly (135 € minimum) or half yearly (270 € minimum). You can also make one-off payments to the maximum amount.
- Your savings are paid at the rate of 1.00% (1).
Interest earned is subject to a fixed rate income tax (or you can opt to be taxed on the income tax progressive scale) and social charges. An obligatory advance payment is made at source when the interest is paid onto the account, this is then deducted from the total amount of income tax due (it is possible to opt for exemption of this advance payment under certain conditions).Before this date interest is exempt from tax until the 12th anniversary of the contract.
For non-French residents no taxes or social charges apply in France (but you may be subject to taxation in your country of residence).
Get a home loan at a guaranteed rate.
Purchase or construction of a primary residence, renovation or development in your home... the PEL allows you to apply for a home loan from the 3rd anniversary of its opening. Depending on borrowing rights acquired during the savings phase, a guaranteed rate is known from the subscription date of your PEL(2).
A loan is a commitment and must be repaid. Check your ability to repay the loan before making the commitment.
Good to know: You can transfer your borrowing rights to a member of your family, if they have also held a PEL for at least 3 years (under regulation Epargne Logement).
(1) Gross annual rate for the PEL is correct as of 01/08/2016, subject to change without prior notice.
(2) Under the terms and conditions of the Plan Epargne Lodgement regulations subject to change and under the condition that your mortgage file is accepted by the Caisse Regionale de Credit Agricole-lender. PEL loans are destined to finance the purchase of a main residence. A PEL loan is destined to finance work (building, repairs, improvements or maintenance) and would be in the form of a consumer loan or mortgage depending on the type of garantie requested by your Caisse regionale. For a loan not guaranteed by a charge or a similar security the loan will be classed as a consumer loan. You have a statutory withdrawal period of 14 revolving calendar days to legally retract.For a loan guaranteed by a charge or a similar security the loan will be classed as a consumer loan. You have a 10 day cooling off period to accept the loan offer. The finalisation of the sale would depend on the loan being obtained. If you do not obtain the loan then the vendor must reimburse the funds already deposited. Ask your adviser for more information concerning the conditions of the offer.
*For minors the contract is addressed to your legal representative(s).