Plan Epargne Logement (PEL)
Kick start your savings, whether you are saving for a mortgage or wish to build up a cash sum for later in life
|Secure: 100% of your capital protected at all times|
|Open an account with 225€ - and affordable sums for monthly deposits|
|Get a home loan at a guaranteed reduced rate|
|Borrow up to 92000€ over 2 to 15 years depending on the amount held in PEL|
Why have a regular savings plan?
There are many reasons – and benefits – from saving money regularly.
Putting money aside into a savings deposit account is a great financial habit. It builds your financial security, enables you to earn interest on your savings and provides you with a useful nest egg for the future.
If you have a specific goal or purpose, saving money regularly is easier. You can budget for a certain amount each month and watch your savings investment grow over time. Perhaps you are saving money for that holiday of a lifetime, or to fund your children’s education through university?
Another major reason is to build up a cash sum to put down a deposit when you are looking to take out a mortgage and buy your home.
The average price to buy a property in France is €160,000 with an average deposit of 15 – 25% required(1). Therefore, home buyers will need a savings plan of around €40,000, in addition to paying for legal fees, removal costs and any relevant expenditure on renovation or household goods.
Regular saving is a tax efficient, effective, secure and clever way of helping you to reach that goal. And opening a savings account with CA Britline is easy.
Plan Epargne Logement – CA Britline’s regular savings plan
CA Britline’s Plan Epargne Logement (PEL) is a regulated deposit savings account. It is an ideal savings account for people who wish to save money regularly for the short (minimum 2 years) or the long-term and is available to those who live permanently in France or abroad. This makes it a good savings investment plan for those thinking of buying a second home in France or wishing to live here full-time.
Whether you are an adult or a young person, you can open a PEL deposit savings account.
With the PEL account, there is also the possibility of obtaining a mortgage with a favourable interest rate to purchase your main residence.
It is free to open a PEL account: there are no fees.
How does the Plan Epargne Logement account work?
The PEL requires a minimum investment over four years. You need to make a commitment to save regularly, with interest paid at a pre-set rate.
After 2 years, you may apply for a home loan for a primary residence (new purchase or renovation). The interest rate is set and guaranteed for the entire period of the loan(2).
Important Note: The maximum period you can save in a PEL account is 10 years. You can keep your account for an additional five-years without the requirement to make regular payments if you no longer require a mortgage.
After 15 years, any funds are automatically transferred into a new account: Compte Sur Livret (CSL). All your money remains secure, so if you wish you can withdraw the funds without penalty.
What are the minimum and maximum amounts you can save?
You can open a CA Britline PEL savings deposit account with a minimum deposit of only €225.The minimum amounts you can deposit are as follows: -
- Monthly: €45
- Quarterly: €135
- Half-yearly: €270
You must pay a minimum of €540 into your account each year.
You can also make a lump sum investment as well as regular monthly savings.
The maximum investment is €61,200.
What is the interest rate payable on a savings deposit account?The interest rate for the PEL is 1.00% fixed for the term of the contract(3). Please note: the interest rate for PEL and other deposit accounts are regulated by the French government.
Accessing your savingsIf you decide to access your savings before the end of the agreed term, you can do so. You must close your account in this event. If it is closed before 2 years following opening, you will receive a reduced interest rate which is currently set at 0.25%(3).
Projecting the growth of your savingsIf you would like a projection on your savings, please contact us for further information.
Protecting your savingsYour savings are 100% protected – at all times. CA Britline is a member of the Guaranteed Fund for deposits, the Guarantee of Investors warranties and Guaranteed Fund for investors. The French government regulates all these guaranteed funds.
Is tax paid on a Plan Epargne Logement savings account?
Yes. Tax and social charges are payable on the interest earned in a PEL account on a fixed rate basis. Depending upon your income, you may be able to opt to pay tax based on the standard income tax bands.
Tax is deducted automatically on any interest earned – at source.
It is possible to opt for exemption of the deduction at source, under certain conditions.
For non-French residents, no taxes or social charges apply in France (Note: you may be subject to taxation in your country of residence).
How to open a Plan Epargne Logement savings plan account
Opening a PEL account is quick and easy.
Please click on the link providing us with your contact details and how much money you wish to save on a regular basis each month.
Finally... did you 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 (as per the Plan Epargne Logement regulations). They can then become a regular saver, too!
Contact detailsIf you wish to speak to one of our friendly English-speaking advisors at CA Britline, please contact us on +33 (0)2 31 55 67 89. We are open Monday to Friday 08.45 to 18.00 (French time).
(1) https://www.notaires.fr/en/housing-tax-system/french-property-market/french-property-market-analysis. Correct as of November 2020.
(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 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. Ask your adviser for more information concerning the conditions of the offer.
(3) Gross annual rate for the PEL is correct as of 01/08/2020, subject to change without prior notice.