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PEL for English customers

marché english-speaking-customer

Planning a property transaction? Benefit from high-performance savings and a fixed-rate loan. .

Earn up to 3.5% on your savings

With a Plan Epargne Logement (Home Savings Plan – PEL), you can save up to €61,200 with minimum monthly deposits of just €45. Your savings benefit from an interest rate of 2.5%1. Take out a home loan after 4 years and a government bonus will boost the rate to almost 3.5%2!

A home loan at a guaranteed rate

After just 3 years, you can take out a home loan at a guaranteed rate that is fixed when you open the account (the size of the loan depends on borrowing rights acquired during the savings phase). You can borrow up to €92,000 to finance your property projects.

Favourable tax status

For the first 12 years, interest payments on your PEL are exempt from income tax (excluding social contributions).

Good to know: combine the advantages of a PEL and a Compte Epargne Logement (CEL) to boost your savings, keep your money available and obtain extra borrowing rights.Interest payments on savings accounts (both regulated and unregulated) are subject to the “règle de la quinzaine” (“fortnight rule”). Deposits made between the 1st and the 15th of the month start bearing interest from the 16th. Equally, money deposited between the 16th and the last day of the month starts bearing interest from the 1st of the following month. Note that money withdrawn between the 1st and the 15th only earns interest up to the last day of the previous month and that sums withdrawn between the 16th and the last day of the month earn interest up to the 15th of that month. Remember this rule when you’re making withdrawals and deposits. If not, money left in your account for short periods might end up earning absolutely no interest at all!

Your PEL on line

With Crédit Agricole PEL Online, you can:

  • view your PEL account balance and transaction history
  • view the borrowing rights you have acquired
  • make an exceptional transfer from your current account to your PEL
  • download your PEL statement

(1) Gross annual rate since 01/08/2005
(2) Within the framework of Epargne Logement regulations.
Detailed description

Who is it for?

Anyone who does not already hold a PEL (Plan Epargne Logement) or CEL (Compte Epargne Logement) with another bank.

What is a PEL?

The Plan Epargne Logement (PEL) is an investment that earns interest at a predetermined rate and has a minimum term of 4 years. At term, the holder is entitled to a property loan at a guaranteed rate that is fixed when the account is opened.

Le conseil du Crédit Agricole

PEL and CEL: the winning combination to finance your property projects

With a PEL, you can save for 4 years then borrow to help finance your property transaction. By combining your PEL with a CEL, you benefit from additional, available savings and extra borrowing rights. It’s the perfect way to finance renovations!

> Learn more about the CEL

Regular savings at enticing rates

  • Save up to €61,200 over a minimum term of 4 years.
  • Open your account with a minimum payment of just €225 then select the savings pattern that suits you. You can choose to make monthly, quarterly or half-yearly contributions (at least €45 per month, €135 per quarter or €270 per half-year). You can also make extra deposits whenever it’s convenient.
  • Interest is paid at 2.50%1. As long as you’ve held your PEL for at least 4 years, you’ll benefit from a government bonus that increases this rate to almost 3.5%2 when you take out a prêt épargne logement (home savings loan).

Tax advantages

  • Your PEL is exempt from income tax for the first 12 years. Thereafter, interest payments are subject to income tax or, if you prefer, to a flat-rate withholding tax (16%).
  • Interest payments are subject to social contributions. These charges are levied from the 10th anniversary of the PEL onwards or on the closure of the account, whichever comes first.

A guaranteed, fixed-rate home loan

Buying a flat, building a house, renovating your existing home or the place you just bought… with a PEL, you can take out a home loan for most kinds of real-estate project after just 3 years. The size of the loan depends on borrowing rights acquired during the savings phase (the maximum is €92,000) and the interest rate is fixed when you open the account. Even if commercial rates rise, you’ll always be able to borrow at an excellent rate.

Good to know:you can transfer your borrowing rights to a member of your family as long as they have also held a PEL for at least 3 years.

For example:

  • You open a PEL in January 2007 with an initial deposit of €4,500 and make monthly deposits of €150. After 4 years, you have built up a capital of €11,700. With interest and the government bonus paid when you take out a loan, the capital increases to €12,880.06 (before social contributions).
  • You can borrow up to €23,000 over 7 years to help finance your property transaction(3) . The Annual Percentage Rate (APR) is 4.86%. You pay 84 monthly instalments of €323.49 (obligatory life/disability insurance included, no arrangement fees). The total cost of the loan is €4,173.16.

    Or

  • You can take out a loan of up to €21,500 over 5 years(3) to pay for building work or renovations. The APR is 4.99%. You pay 60 monthly instalments of €92.36 (obligatory life/disability insurance included, no arrangement fees). The total cost of the loan is €643.60.
(1)Gross annual rate since 01/08/2005
(2) Within the framework of Epargne Logement regulations.
(3) For property acquisitions excluding SCPI or for building works of a value greater than €21,500, you have a period of 10 days to decide whether or not to accept the loan offer. The sale is subject to a loan being obtained. If a loan is not granted, the vendor must reimburse all sums paid. For building work worth less than €21,500, the loan is subject to article L. 311-1 and following of the Consumer Code. In this case, you have 7 days, from the day of signature of the contract, during which you can retract your agreement.
Subject to your application being accepted by the regional office of Crédit Agricole, lender.
Questions & answers

How much does it cost to open a PEL ?

No fees or commission charges are levied for holding or opening this type of savings account.

Can I open a PEL for my 15-year old son ?

Yes. The PEL is available to everyone, both adults and minors, provided that they do not already hold a CEL (Compte Epargne Logement) or PEL (Plan Epargne Logement) with another bank.

My PEL is almost mature but I don’t have any plans to invest in property. What should I do ?

After 4 years, you can extend your PEL from year to year and continue to invest funds until the 10th year. You can also choose to close the account to recover the capital invested and interest paid. You will receive the government bonus if you take out a home loan within 1 year. You can also choose to transfer your borrowing rights to a family member as long as they have also held a PEL for at least 3 years.

The basics
© Crédit Agricole 2011