The operation of the PEL, which varies depending on the year of subscription, regularly confuses our readers. It must be said that banks’ communication on this subject is sometimes poor. Kermeb wonders what will become of his PEL which is reaching the 10-year mark…
Question from Kermeb, December 13:
I have had a PEL since 2014, luck is coming in 2024, should I withdraw my money to another investment otherwise what happens to my PEL?
Hello Kermeb and thank you for your question, which perfectly illustrates a recurring question in the mailbox where MoneyVox receives all readers’ questions: What happens at the 10th anniversary of the PEL?
To begin, a clarification: we have no details on your housing savings plan, Kermeb. Thus, we do not know if you stopped paying into your PEL early or if you have reached the ceiling, two events which disrupt the classic rhythm of life of a plan. Let’s say your PEL followed a very standard rhythm: you have around 45 euros (or more) per month for 10 years and you are still far from the ceiling.
Yes, the 10-year deadline is not insignificant: it signals the end of your payments. The end of the savings phase. BUT, the 10th anniversary of your PEL does not signal the end of its life however!
Once the saving phase is over, the waiting phase opens. You don’t pay any more money into it. You can’t remove anything without breaking your entire PEL. But you can let it live like this for 5 years, without touching it, and your plan will continue to accumulate interest at 2.50% gross. As you opened it in 2014, the lifespan of your PEL is limited to 15 years at most.
A PEL 2.07% net of tax
There is still important information regarding the remuneration of your home savings plan: for the moment it is still part of the tax-exempt plans (which is not the case if you open a new one today). Your annual interest is only subject to social security contributions, 17.2%. Or 2.07% net, for your 2023 interests, and again until the 12th anniversary of the PEL, therefore in 2024 and 2025.
From 2026 and until 2029, if you keep your PEL until the end, your annual interest will be subject to income tax (12.8%), or 1.75% net.
My PEL is over 12 years old. I’m going to pay taxes. Should I open a new one?