2023-12-27 03:00:00
The Housing Savings Plan (PEL) is a mechanism offered by banks to help savers carry out medium and long-term real estate projects. The question then arises of how much it is possible to earn during a period of 5 years by benefiting from a PEL. Let’s analyze the different aspects of the PEL, including the remuneration rate, the ceiling and the taxation applicable in 2023-2024.
Pay rate and PEL ceiling
Since January 1, 2023, the remuneration rate for new PELs increased to 2%giving its holders the opportunity to generate interest on their payments.
The annual remuneration remains fixed throughout the duration of the contract, although it relates to your deposits made during each calendar year.
To better understand how much you can earn in 5 years, let’s take the example of a PEL with a maximum ceiling of €61,200. Here are some illustrations:
Initial depositGain following 5 years (rate 2%)€10,000€1,040.81€20,000€2,081.62€30,000€3,122.42€40,000€4,163.23€50,000€5,204.04 €61,200€6,369.75
Taxation of the PEL in 2023-2024
The taxation applicable to your Home Savings Plan is an aspect to take into account when evaluating the potential return.
PEL interest is subject to a single flat-rate deduction of 30% composed of: 12.80% income tax, 17.20% social security contributions.
Let’s take the example of a saver who invested €20,000 and earned €2,081.62 in gross interest in 5 years:
- Social security contributions are €358.04 (17.2% x €2,081.62).
- With 12.8% income tax: €266.44 (2081.62 x 12.8%)
- In the end, its net interest will be €1457.13 (2081.62 – 358.04 – 624.49).
Obtaining a property loan thanks to the PEL
In addition to the interest generated by payments into the account, one of the main objectives of the PEL is to allow its holder to obtain a property loan at a preferential rate. It is possible to borrow up to €92,000 to finance a primary or secondary residence.
To be eligible for the property loan, you must respect certain conditions linked to the savings period and the minimum amount saved. Here are some examples:
- Minimum savings period of 18 months : you must have saved for at least a year and a half to apply for a property loan.
- Minimum amount of loan rights : to obtain a loan, the PEL holder must have a cumulative amount of €450 in loan rights, calculated according to the interest generated by the savings paid into the plan.
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