Published on: December 28, 2024 | Article No: 288 | By: @rprasanth_kumar
From 1st January 2025, the new interest rate of Plan Épargne Logement (PEL) savings accounts in France will be 1.75%, compared to 2.25% for PELs opened during 2024.
Did you know? Once you open a PEL, the interest rate is locked in and guaranteed for the entire duration of the plan. Unlike savings accounts, whose rates can change frequently, your PEL keeps the same rate. On top of saving, a PEL allows you to qualify for a housing loan, with the loan rate depending on when your plan was opened.
For a complete list of savings accounts, please check Banking: Types of Savings Accounts in France.
Summary of Plan épargne logement (PEL)
| Eligibility | All public irrespective of their age, nationality or residence in France |
| Where | Banks in France |
| Minimum Balance | 225 € for opening the account & then minimum mandatory payments of 540 € every year |
| Contract Duration | 4 – 10 years |
| Maximum Balance | 61,200 € excluding interests earned |
| Interest Rate (fixed) | 1.75 % gross for accounts opened from 1st Jan 2025 2.25 % gross for accounts opened between 1st Jan 2024 – 31st Dec 2024 2 % for accounts opened between 1st Jan 2023 – 31st Dec 2023 1 % for accounts opened between 1st Aug 2016 – 31st Dec 2022 |
| Interest Payment | Calculated every 15 days on 1st & 16th day of the month. Paid annually on 31st December |
| Withdrawal | After 4 years. Withdrawals before 4 years will lead to automatic account closue. |
| Taxation | 30 % flat tax or according to income tax bracket |
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Opinion: With the interest rate being taxed a 30% flat tax or according to the income tax bracket, it doesn’t make sense anymore to save money using a PEL account that pays 1.75% interest (~1.25% net after tax). If you think it’s useful, please let me know in the comments.
Sources & References 📕
#nouveau Le taux du plan épargne logement (#PEL) passe à 1,75 % à compter du 1er janvier 2025.
— service-public.fr (@servicepublicfr) December 20, 2024
Pour en savoir plus :
🔗 https://t.co/0gzfXqHcL7#epargne #epargnelogement #taux #servicepublicfr pic.twitter.com/EVLTref08N
