savings
home ownership savings plan

Home Ownership Savings Plan

Savings

PEL

The Home Ownership Savings Plan (Plan Épargne Logement or PEL) is a fixed-term savings contract that will allow you to save over the medium term and Home Ownership Savings Plan Loan (PEL loan) to finance home improvement, purchase or construction.

  • Interest rate
  • 1% gross(1)

In detail

Interest rate

1%(1) grossInterest guaranteed

From the first deposit you make into your PEL, your money will earn you 1% gross per year (excluding social security contributions). The deposit limit is €61,200.

(1) Rate in effect as of 2016-08-01, excl. social security contributions.

Tax advantages

Income taxAfter 12 years

PEL interest is subject to income tax only after 12 years.

Scheduled deposits

SAVE REGULARLYat your own pace

Schedule monthly, quarterly or biannual deposits into your PEL, at a minimum of €540 per year.

You must make an initial deposit of €225 when opening a PEL.

Mortgage loan

A favorable rateguaranteed

A guaranteed rate of 2.70% excluding insurance for a loan of up to €92,000.

Additionally, you can receive a government premium of 1% capped at €1,000 on any loan of €5,000 or more.

Government premium

€1,525 limitSee green

The government premium limit can be raised to €1,525 if you invest in a low-energy home or ecological amenities.

Further details

Please note

PEL + CEL (Home Ownership Savings Account): the winning combination for your home!
By matching a CEL with a PEL: you can combine your borrowing rights to obtain a loan of up to €92,000. If needed, you can still have access to your CEL while keeping your PEL for larger projects.

Detailed characteristics of the

Home Ownership Savings Plan (PEL)

Download the pdf

  • Eligibility, interest paid, limit, deposits, withdrawals, term
  • Value date, taxation, closure, transfer of rights, inheritance, bequest
  • transfer, convert your PEL into a CEL
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Eligibility

Any private individual (including minors, protected adults and non-residents) who does not currently hold a PEL can sign up for a PEL (or do so via their legal representative). Only one PEL may be opened per person.

Please note:

  • You cannot open a PEL as a joint account
  • you can hold both a CEL and a PEL at the same time as long as they are held by the same establishment. If you already hold a CEL in another bank, you can transfer it to BNP Paribas.

Interest paid

The amount of interest paid for a PEL is guaranteed for the entire duration of the plan. The interest rate is 1%, in addition to a government premium of 1%. The maximum premium amount is €1,000, deposited upon obtaining a PEL Loan of at least €5,000 on your main residence. The government premium amount can be raised to €1,525 if you invest in a low-energy home or ecological amenities.

PEL interest is only subject to income tax after being held for 12 years. Capitalized interest is subject to social security contributions each year, either when the interest is applied to the account or upon the early conclusion of the plan.

Limit

The PEL limit is €61,200.

This limit can only be exceeded by the amount of interest paid in.

Deposits

  • Initial deposit: €225 minimum.
  • Subsequent deposits: €540 minimum per year (mandatory).
    These deposits must be made regularly (monthly, quarterly or biannually). Additional unscheduled deposits are also possible.

Withdrawals

There is no minimum withdrawal on the PEL; any withdrawal will close the account.

With a CEL, on the other hand, you can make withdrawals at any time free of charge, as long as you maintain a minimum account balance of €300. If not, your account will be closed. You can make transfers into other BNP Paribas accounts, as well as into third party accounts.

Term

You can sign up for this fixed-term savings contract for a minimum of 4 years, which can be extended up to 10 years maximum. After 10 years, you may no longer make any deposits.

At this point, your PEL is maintained, accruing only bank interest and no longer generating new borrowing rights. 5 years after the contract's expiration, and in the absence of the withdrawal of funds either when you sign up for a loan or not, the PEL will become an ordinary Livret savings account. The subscriber will then lose all of the rights previously associated with the PEL.

FAQ ()

  • Can I have access to the funds deposited into a PEL?
  • The funds deposited into a PEL are in principle unavailable for at least 4 years. Early closure of your PEL before it enters its 4th year will entail a lower interest rate, the loss of your borrowing rights or the loss of your government premium, as the case may be.

    If you wish to access your funds before 4 years have passed, you can convert your PEL into a CEL (home ownership savings account).

    Your savings interest will be recalculated at the CEL rate in effect when the conversion took place, as will be your borrowing rights, determined by the conditions of the CEL. This way, you can take out funds without necessitating the closure of your account.
  • Can I open a PEL and a CEL at the same time?
  • The same person can certainly hold both a PEL and a CEL, given that they are managed by the same banking institution.
  • Is the PEL loan rate more favorable than the CEL loan rate?
  • The PEL loan rate has been 2.70% excluding insurance since 2016-02-01, while the CEL loan rate has been 2.227% excluding insurance since 2010-08-01.

    Please note that the maximum loan limit for the PEL is €92,000, while that for the CEL is €23,000 (limits may not be combined).
  • Can I transfer my PEL borrowing rights?
  • The holder of a PEL can transfer their borrowing rights, but only to specific beneficiaries: the holder's spouse or close family members, or the close family members of the holder's spouse (e.g. ascendants, descendants or indirect family members).

    Two additional conditions must also be fulfilled: the PEL whose rights have been transferred must have existed for more than 3 years and the beneficiary must also have held a PEL for more than 3 years.
  • PEL: which investment should I make after the 10-year period?
  • After 10 years, you cannot make any further deposits into your PEL. The amount invested will continue to accrue interest, excluding the premium, and will not generate any additional borrowing rights. You then have 5 years to use the funds and your borrowing rights.

    After 15 years, your PEL will automatically be converted into an ordinary Livret savings account and you will lose your borrowing and premium rights.

    In any event, PELs have a maximum duration of 15 years.

In addition

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BNP Paribas, limited company with a capital of €2,492,770,306 – Headquarters: 16 boulevard des Italiens, 75009 Paris. Registered with the Paris RCS (Trade and Companies Registry) as No. 662 042 449 – EU VAT identification No. FR76 662 042 449 – ORIAS No. 07 022 735.