Savings products: booklets and plan (PEL, CEL, young booklet…)

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Image d´une normal Bank
Image d´une normal Bank

In all banks, your (pardon the commercial) customer support can and will offer you all a range of booklets that allow you to d´epargner your money, there are big two broad categories, l´epargne liquid or non-liquid c´est to say available at any time or blocked. In general l´epargne block not l´est not really because it is possible to break most of the booklets almost immediately, subject to a loss of interest.

It is necessary to distinguish in booklets booklets into which you can withdraw your money at all time and those who are blocked.

Bank savings to view (and therefore available at any time)

In-depth articles

Libretto by a.
Booklet blue
Libretto by sustainable development
Young booklet
People's savings book (Sara)
Savings housing (CEL)




 

Summary table

Title Features Ceiling Interest and taxes
Booklet has /Livret blue Eligibility: 1 booklet per person or entity with a payment of at least €15 €22 950

the annual capitalisation of interest may exceed this ceiling

0.75% to 08/01/2015

No d´impots, no social security contributions

Young booklet Eligibility: a booklet per person aged 12-25 physics.

If you have less than 16 years old, you need the permission of your representative legal to make withdrawals on your young libretto.

If you are aged 16-18, you can make withdrawals unless your your legal representative opposes.

€1600

minimum on booklet €10 in most banks

Least as much as the livret A

2.15% to 08/01/2014

No d´impots, no social security contributions

Sustainable development booklet (ex codevi) a LDD by taxpayer, 2 per household, payment to the opening: €30 € 12,000

the annual capitalisation of interest may exceed this ceiling

0.75

1% at 01/08/2014

No d´impots, no social security contributions

People's savings book  

You must be fiscally resident in France or in the DOM.

Your qualifying income by 2013 (RFR) listed on your notice of imposition of 2014 shall not exceed the ceiling fixed by the regulations *.

You can purchase only a single Sara with a maximum of two species per household.

Your spouse can also subscribe this booklet, but LEP can't take the form of a joint account.

€7 700

the annual capitalisation of interest may exceed this ceiling

minimum initial deposit of €30

current 1.25

1.50%

No d´impots, no social security contributions

Account on libretto

(CSL / banking booklet B)

one or more per person physics, possible no joint account

with a minimum of €15

No ceilings

€10 minimum

0.40% from 16/02/2015

Levies 15.5% on the interest

CEL 1 only CEL per person physics. No minimum age.

Must be opened in the same bank if its holder already has a plan

saving housing in this bank.

Individual account with a minimum of €300, amount below which the

account will be closed.

€15 300

The amount of the payments is free but cannot be less than €75.

excluding State premiums, is 0.75%

Award-winning d´etat 0.37

Social collection 15.5%

  • The original of your notice of imposition of the previous year you will be asked to verify that your tax reference income does not exceed the ceiling fixed by the law. This request for proof is annual. The new eligibility conditions have been set in the amending finance law for 2014, published in the OJ of 29 December 2014.

Calculation of interest

Interest is calculated per fortnight, according to the following rule:

  • any deposit between the 1st and the 15th of the month bears interest from the 16th of the same month.
  • any deposit between 16 and 31 of the month bears interest from the 1st of the following month.
  • taxing withdrawals between the 1st and the 15th of the month shall cease to bear interest from the 1st of the month.
  • the withdrawn amounts between 16 and 31 of the month cease to bear interest from the 16th of the month.

Savings housing (CEL)

C´EST available placement, which produces interest and allows to obtain a loan at a rate privileged, subject to conditions.

Account savings housing: CEL

 Definition

Favorite personal investments include savings housing (CEL) and the housing Savings Plan (PEL). The reason for this infatuation is threefold: they are actively promoted by banks, they bring a financial security at the level of savings and credit, and they benefit from tax advantages (what the French value lot!).

 Description

Unlike all other financial products, the CEL and the PEL combine two steps:

  • a phase of paid savings (from 18 to 48 months): its rate is set between 2% and 3.50% and it supported 11% of payroll (since January 1, 2005) during the denouement for the ELP and the payment of the premium of the CEL.
  • the possibility of obtaining a loan on a property at the end of the saving phase, at an interest rate set at the outset of the CEL or ELP. The amount of the loan is determined by the total of interest received during the savings phase. The rate of this loan (currently 3% for the CEL and 4.12% for the ELP excluding insurance) may be interesting to certain periods or not to be, depending on the level of interest rates.

 

Bank savings blocked (so not available at any time)

In-depth articles

Housing (PEL) savings plan
Popular savings plan (PEP)
Savings company (LEE)

Summary table

Title

Features Ceiling Interest and taxes
Housing (PEL) savings plan Any natural person (irrespective of age, nationality or residence) can open a saving housing (ELP) (1) Plan.

 

A single ELP per person.

A minimum deposit of €225.

After his maturity, ability to retain the ELP for 5 years (i.e. a total of 15 years maximum): funds are paid at the rate in force on the opening, payments are no longer possible, and loan and premium rights are frozen.

 

Amount of down payment

 

at least €225

Amount of annual payments

 

at least €540

€61 200 (excluding capitalized interest)

Minimum 4 years.

Any withdrawal before 4 years causes the closing of the ELP.

Maximum 10 years.

Past 10 years, you can no longer make payments but your continuous ELP produce interest for 5 years.

The 15th year, your ELP is automatically transformed into a classical savings, with a rate of pay fixed by the Bank.

 

August 1, 2003 to January 31, 2015 2.5%
Since February 1, 2015 2%

Some people still have older books with the 10 percent and more

Social collection 15.5 percent and taxes beyond the 12 year

Popular savings plan (PEP) Savings plan popular (PEP) can still be powered by savers who are carriers, notably because of its tax advantages.

The popular savings plan (PEP) is a former savings product based on placement of funds in the long term, savings are then repaid in the form of capital or annuity. It is possible to open a PEP since 2003, but the plans opened before this date can continue to be fed.

92 00 euros per plan
Booklet savings business Anyone can open a LEE (libretto savings company), in the limit of a booklet per household.

The holder of the record may assign its rights acquired to a family member, creator or transferee of business.

 

€45800

The savings on a LEE extends between 2 and 5 years.

Down payment: minimum of 750 euros.

Annual payment: minimum of 540 euros (installments monthly, quarterly, semi-annually). Deposit capped at 45,800 euros excluding interest.

 

The rate of LEE is equal to 3/4 of the livret A rate, rounded to the lower 1/4 point.

Rate: 0.75% net since August 1, 2013

The remuneration paid is net of tax.

Since the 1st January 2014, the newly opened LEE are more tax-free.

The Plan savings housing (PEL)

C´EST a bank account that allows a phase saves between 4 and 10 years, to obtain a loan at a preferential rate, and a State premium, for the financing of real estate through the acquisition of rights to loans.

The PEL beginning on or after 1 February 2016 will be paid at the rate of 1.50%. If this information has been confirmed by the Minister of finance, regulatory and final texts are not known to date.

 

Unless mentioned otherwise, this page describes the operation of the ELP open effective March 1, 2011 and February 1, 2015, where a rate change was made. See the old ELP.

Operation of the ELP

The housing Savings Plan (PEL) is a regulated bank account which can be stored for up to 15 years. It allows, from a duration of 4 years savings to get a savings housing loan to finance a principal residence and then, a premium will be paid by the State. However, to obtain rights to interesting loans, the savings must be significant (see the simulation of PEL).

The key points of the ELP:

  • The minimum payment at the opening of an ELP is €225.
  • Must be obligatorily pour in a minimum of €540 per year (€ 45 per month, €135 per quarter or €270 per semester).
  • The total payments shall not exceed €61,200.
  • No partial withdrawal is possible: any withdrawal causes the closing of the ELP.
  • A fence before 2 years is penalised by a lesser remuneration.

Transformation of an ELP in CEL

During the phase of savings, and especially as an alternative to the closure of the ELP before its 2 years, it is possible to ask your banker to transform a savings account savings housing housing Plan. This operation will result to recalculate the interest at the rate of CEL in effect (generally, a rate lower than that of the ELP) and generate rights to loans CEL in lieu of rights to loans PEL. The transformation can be done on an existing CEL or a CEL opened for the occasion.

However, this transfer is carried out within the limits of the 15,300 euros limit applicable to the balance of the CEL, any difference is then paid on a current account. Where appropriate, it may be smart to empty the CEL before the processing of an ELP in CEL.

A phase of savings between 4 and 10 years

The minimum period of subscription of a housing Savings Plan is 4 years. This time, the contractual deadline, is specified on the contract signed with the Bank. After 4 years, the ELP can be extended year by year, by an amendment to the contract, up to a maximum of 10 years. This extension must be requested no later than 6 months after the deadline.

During this phase of savings, the ELP can be closed upon request of the Subscriber, at any time. It may also be terminated by the Bank if the annual minimum payment has not been respected.

  • If the closure of the ELP is made before 2 years, interest will be recalculated at a rate of CEL in force on the closing date. Loans and premium rights are lost. Any overpayment of social security contributions levied on the basis of the interest at the rate of the ELP is rendered.
  • For all PEL closures after 2 years, the pay at the contractual rate of the ELP is preserved, but:
    • If the closing occurs between 2 and 3 years, loans and premium rights are lost.
    • Between 3 and 4 years, the rights to loans are those acquired at the 3rd anniversary. The premium shall be reduced by half.
    • Between 4 years and contractual maturity (up to 10 years), the rights to loans are those acquired at the previous anniversary date.

A phase of waiting 5 years maximum

From the contractual maturity date (i.e. between 4 and 10 years after the opening of the PEL), it is possible to make the payments. Rights to loans (and the award-winning possible) are blocked at the level reached by this deadline. The plan is frozen for a maximum of 5 years and continues to be paid at the rate specified in the contract. One speaks also for this situation of "Pel expired.

For the ELP open until February 28, 2011, this waiting phase was not restricted by the rules and the people could retain indefinitely their plans. The PEL beginning on or after March 1, 2011 have a maximum lifespan of 15 years.

The withdrawal of funds during this period to enjoy the rights to loans for one year from the date of withdrawal and in the limit of 5 years after the deadline. For example, if funds are recovered 4 years and 2 months after the contract deadline, the Subscriber shall use rights for loan in the 10 remaining months.

Beyond 5 years, if the funds are not released, the ELP automatically changes to account on classic libretto, taxes and paid at the discretion of the Bank. Loans and premium rights are then lost.

Rates of pay for the ELP

The remuneration fixed in the subscription of the housing Savings Plan then remains in force for the duration of the product's life. But this rate varies depending on the opening date. From 2011, the Bank of France can now revise the rate each year ELP, a mathematical formula based on integrating the Swap rates to 2, 5 and 10 years:

Rate of pay = 70% swap rate 5 years + 30% (10 year – 2 year swap rate swap rate)

The publication of this new rate, which may not be less than a rate floor of 2% (or 2.50% between 2011 and 2014), takes place at the latest on 5 December of the previous year. However, in exceptional circumstances, the Ministry of economy may derogate from this new pricing rule.

Historical rate of the ELP

Beginning End Rates of pay for the ELP The ELP loan rate
01/07/1985 15/05/1986 7.50% (1) 6.45%
16/05/1986 06/02/1994 6.00% (1) 6.32%
07/02/1994 22/01/1997 5.25% (1) 5.54%
23/01/1997 08/06/1998 4.25% (1) 4.80%
09/06/1998 25/07/1999 4.00% (1) 4.60%
26/07/1999 30/06/2000 3.60% (1) 4.31%
01/07/2000 31/07/2003 4.50% (1) 4.97%
01/08/2003 28/02/2011 2.50% 4.20%
01/03/2011 31/01/2015 2.50% (2) 4.20%
01/02/2015 01/31/2016 2.00% 3.20% (3)
Effective February 1, 2016 1.50% 2.70% (4)
See also the graph of regulated savings rates.

(1) for these generations of housing savings plan, the rate of pay incorporated the State premium. Is that as of December 12, 2002, that the payment of the premium was conditioned to the achievement of a savings housing loan.

(2) there is no change in remuneration for the ELP open from 1st March 2011 and those of the previous generation, only the applicable regulations is different. For those beginning on or after January 1, 2012, the interest rate of the ELP remains unchanged to 2.50%.

(3) effective February 1, 2015, ELP savings rate is lowered by half a point to 2%, that of the loan of a point, 3.20% (OJ of 30 January 2015).

(4) subject to the publication of statutory instruments.

Note: Unlike the booklets regulated for which the law imposes a calculation of interest biweekly, there is no such thing for the ELP. You will find so 2 modes of calculations following banking institutions: interest calculated on the day the day (for example: Crédit Agricole or Crédit Mutuel) or interest calculated per fortnight (for example: Caisse d ' épargne).

Right to ELP and bonus d'Etat loans

Purpose of the loan

The savings housing loan and the bonus that goes with it are reserved for the financing of a transaction involving a principal residence (own, that of a member of his family or of a tenant). It is not possible to finance the purchase of a second home or tourism (except for the ELP open before March 1, 2011) by this means.

Rights to loans

The amount deducted for rights to loans is the total of the interest generated on the ELP to the contractual maturity date, or to the previous anniversary date in the event of withdrawal prior to the contractual deadline. Note that rights may also be obtained by assignment of rights.

Premium savings paid by the State

The conditions for obtaining of the premium have evolved over time. For the ELP beginning on or after March 1, 2011, is now conditioned the granting of a loan savings top housing or equal to 5,000 euros. Obtaining the maximum premium of 1,525 euros is reserved for the financing of certain operations of acquisition or construction of "green housing":

  • Either a housing nine benefiting from the "BBC 2005" label (building low energy consumption).
  • Is supporting former housing an A, B, C or D rank on the reference energy performance diagnosis scale.

If not, the premium is capped at 1,000 euros.

The amount of the premium depends on the rights to obtained loans and represents an increase of 100 basis points of the rate of pay of the ELP. Either 2/5 interest earned for the ELP to 2.50%, or the half of the vested interests for the ELP to 2%.

Example. A person has obtained rights to loans of 4,500 euros on an ELP at the (fictional) contractual rate of 3.20%. The State premium, before application of the ceilings, will be calculated in the following manner: 100 × 4500 ÷ 320 = 1.406,25 euros.

Loading of State

An increase in the premium may be granted for operations concerning its own housing. The increase is 10% of the vested interests, within the limit of a ceiling, per person in charge usually living in the dwelling. The ceiling is € 153 for green housing financing (same definition as for the premium savings) and €100 in other cases.

Taxation of the ELP

Social security levies

Social security contributions (overall rate of 15.5% effective July 1, 2012) are levied upon registration of the interests of the year (31 December) and during the closure of the plan.

The State premium is subject to social security contributions at the rate in force on the date of its payment.

Tax on income (IRPP)

The interests of the ELP are tax-exempt until the twelfth anniversary of the plan. In the past, the interests of the ELP are taxed at the progressive rate of income tax. Effective January 1, 2013, and except in special cases of waiver deposit, a tax deposit of 24% is collected by the Bank when the payment of interest. This deposit is then deducted from the amount of taxes for the following year.

The State premium is not taxable, regardless of the date of its payment.

Open an account boursorama

 

Sources:

  • cbanque,
  • www.service-public.fr,
  • the world,
  • the figaro

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