PEL: are you affected by an automatic closure from March?

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

If your PEL opened in March 2011, it will automatically close in March 2026.

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.

A PEL is subscribed for a minimum period of 4 years; when opening it, 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 PEL, but it continues to earn interest.

What happens to your savings after your PEL automatically closes?

A home savings plan can have an unlimited life if it was subscribed before 1^er March 2011; if subscribed after this date, its maximum life is limited to 15 years. If you are in this situation, when your PEL matures, reaching this maximum term of 15 years, it will automatically be converted into a classic savings account with a rate of return set by your bank.

Before this 15-year deadline, you can use your PEL to obtain, under certain conditions, a home savings loan ; it may allow you to finance the purchase or building of your main residence, or certain repair or improvement works in your usual place of residence.

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