Home savings plan: are you concerned by the automatic closure of accounts?

The home savings plan (PEL) is one of the regulated savings products. Its opening, operating and remuneration conditions are set by the public authorities; they are therefore identical regardless of your banking institution.

An ELP is subscribed for a minimum period of 4 years; when opening, you must make an initial payment of at least €225. You must then pay at least €540 each year. After 10 years, you can no longer make payments to your ELP, but your ELP continues to earn interest.

The 2010 Amending Finance Act of 29 December 2010 introduced new rules on the closure of housing savings plans. ELPs open since 1^er March 2011 are closed automatically after 15 years. On the other hand, those opened before this date can be kept without limitation of duration.

If your ELP was opened in March 2011, for example, it will automatically close in March 2026.

What happens to your savings after the automatic closing of your PEL?

A home savings plan can have an unlimited life if it was subscribed before 1^er March 2011; if not, its maximum life is limited to 15 years. If you are in the second situation, when your PEL matures, reaching this maximum duration of 15 years, it will automatically be transformed into a classic savings account with a rate of remuneration set by your bank.

Before the 15-year deadline, you can use your ELP to obtain, under certain conditions, a home equity savings loan the latter may allow you to finance the purchase or construction of your main residence, or certain repair or improvement work in your usual place of residence.

You can also close your ELP yourself whenever you want, before it expires. You can then use the funds there for the projects of your choice.