Home savings scheme (PEL)

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Regulated savings product that allows loans to be issued to finance expenses related to purchasing a primary residence or, under certain conditions, homes which have another purpose. Unlike the home savings account, the PEL has a minimum term of four years and a maximum term of ten years. After that time, the scheme can continue to exist but payments can no longer be made to it. The savings interest rate is set for the entire term of the scheme at the rate in effect when the PEL is opened. The money earned on a PEL consists of an interest rate and a government premium. For schemes opened after 12 December 2002, the payment of the premium is linked to the loan being granted. The maximum amount of deposits is €61,200.


Source: Banque de France