Opening new PEL for old savers, good or bad idea?

Unlike other savings schemes like Leverat A or LEP, the Housing Savings Plan (PEL) is specifically intended for households whose objective is to undertake a real estate project. As of January 1, 2024, its interest rate rises to 2.25%, up from 2% in 2023 and 1% in 2022.

Indeed, apart from being an interesting savings scheme, PEL allows its holder to avail property loans at very attractive rates. But from January 2023, the rate on these loans has increased to 3.20% as against 2.20% for PELs opened between August 1, 2016 and December 31, 2022.

On the savings side, interest rates will increase in 2024 and 2023. Consequently, some savers may consider opening a new PEL and closing their old PEL to avail more advantageous savings rates.

Is it a good idea to close your old PEL to open a new one?

However, this initiative is not beneficial for all savers. Indeed, ” The PEL has changed several times over the years, generating numerous scenarios », explains Moneyvox Patrick Couvilliers, Head of Real Estate Credit at LCL. So as shown on the site, some scenarios can be noted Borsorama. Thus, for PELs opened between January 2018 and December 31, 2022, it will be more beneficial for their holders to close them to open new ones, as the interest rate during this period is only 1% (in addition to flat tax).

On the other hand, for savers subscribing to PEL between 2016 and 2022, the latter offers other benefits despite its 1% interest rate. Housing savings credit, in fact, is offered at a rate of 2.20%, while the latter is projected to average 4.20% in December 2023, suggests the Housing Credit Observatory/CSA.

Finally, savers who subscribed to their home savings plans several years ago are strongly recommended to keep them, as they offer interest rates between 3 and 6%. Additionally, PELs subscribed before February 28, 2011 have unlimited life, representing a real benefit to their owners. It is important to remember that unlike Livret A or LEP, PEL has a ceiling of 61,200 euros.

As for the initial deposit, it amounts to 225 euros. Then, the saver has to pay at least 45 euros per month or 135 euros every quarter into their savings account. Obviously paying more is possible. Finally, it is important to remember that from 2018, interest earned with PEL is taxable. (12.80% Income Tax and 17.20% Social Security Contribution)