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, as well as receiving a bonus from the government in accordance with the loan.
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). If you subscribe to a PEL loan of a minimum of 5,000 € after 4 years you may be eligible to receive an additional bonus from the government which makes your interest rate equivalent to nearly 2.00%.
During the first 12 years, your savings plan is exempt from income tax. Beyond this period your interest is subject to progressive rates of income tax standard deduction. Social security contributions are due annually on the interest earned.
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, you can borrow up to 92,000 €, at a guaranteed rate known from the subscription of your PEL. If loan rates increase meantime, you can borrow a sum at the most advantageous (2) rate.
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).
For example (3): You subscribe to a PEL in February 2016 with an initial payment of 4,500 €. You make monthly payments of 150 €. After 4 years, with interest and state premium paid in case of loan, the accumulated capital reached 12,120.96 € (social security contributions deducted), and "borrowing rights" acquired amounted to 498.17 €.
(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.
(3) 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 for an amount greater than 75 000€ is destined to finance work (building, repairs, improvements or maintenance) and would be in the form of a mortgage. 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.
For a PEL loan that is for less than or equal to 75 000€, that is destined to finance purchase and building work simultaneously, would be in the form of a home improvements loan. You therefore have a legal withdrawal period in order to retract.
*For minors the contract is addressed to your legal representative(s).
French residents; new 2013 tax legislation states that savings products with fixed revenues will have the same rate of tax applied as your income tax rates. Effective from the 01/01/2013, an advance of 24% will be deducted at source from the interest earned and will then be taken into account when calculating your tax liability for the year in which you received the interest