Introduction: The PEL, Between Savings and Property Aspirations
The Plan Epargne Logement (PEL) is a regulated savings product historically tied to a property purchase project. Once very popular thanks to attractive rates and a State bonus, it has lost much of its appeal in recent years. In 2026, with a fixed rate of 1.75% for new plans, the question is: is it still worth opening a PEL? This guide takes stock.
The PEL Rate in 2026
A Fixed Rate for the Life of the Plan
The PEL rate is set at opening and remains guaranteed for the entire duration of the plan. This is a fundamental difference from regulated savings accounts whose rates change regularly.
Rate history by opening date:
| Opening Date | Savings Rate | Loan Rate |
|---|---|---|
| Before 2015 | 2.50% to 4.75% | 4.20% |
| 2016 - 2017 | 1.00% | 2.20% |
| 2018 - 2022 | 1.00% | 2.20% |
| 2023 | 2.00% | 3.20% |
| 2024 | 2.25% | 3.45% |
| Since January 2025 | 1.75% | 2.95% |
PEL at 1.75% Gross: What Net Return?
Unlike the Livret A and the LEP, PEL interest is subject to the 30% flat tax (12.8% income tax + 17.2% social contributions) for plans opened since January 1, 2018.
Net return of a PEL opened in 2025-2026: 1.75% x (1 - 0.30) = 1.225% net
Compare this to the Livret A at 2.40% net. The PEL is therefore significantly less profitable as a pure savings product.
How the PEL Works
Mandatory Deposits
The PEL requires regular mandatory deposits, which fundamentally distinguishes it from savings accounts:
- Minimum initial deposit: 225 euros
- Minimum annual deposits: 540 euros (i.e. 45 euros per month)
- Frequency of your choice: monthly (45 euros), quarterly (135 euros), semi-annual (270 euros), or annual (540 euros)
- Deposit ceiling: 61,200 euros (excluding capitalised interest)
Warning: if you fail to make the minimum deposits for one year, your PEL is automatically closed or converted into a CEL.
Duration of the PEL
- Minimum duration: 4 years (early withdrawal means loss of benefits)
- Ideal duration: between 4 and 10 years
- Maximum deposit period: 10 years
- Beyond 10 years: no further deposits possible, but the plan continues to earn interest for an additional 5 years (up to 15 years total)
The Right to a Property Loan
The PEL grants a right to a property loan at a preferential rate. The maximum loan amount is 92,000 euros over a period of 2 to 15 years. The loan rate is fixed at the time the plan is opened (2.95% for PELs opened in 2025-2026).
The problem: with standard mortgage rates around 3.00% to 3.50% in 2026, the PEL's preferential rate (2.95%) offers only a marginal advantage. For older PELs opened between 2016 and 2022 with a loan rate of 2.20%, the advantage is more significant.
PEL Taxation
Plans Opened Since January 1, 2018
Interest is subject to the 30% flat tax (PFU) from the very first year:
- 12.8% income tax (option to choose the progressive scale instead)
- 17.2% social contributions
Plans Opened Before January 1, 2018
- During the first 12 years: income tax exempt, but 17.2% social contributions apply
- From the 13th year onwards: 30% flat tax
Example: Pierre, 55, has a PEL opened in 2010 at 2.50%. His plan is now 14 years old, so it is subject to the flat tax. His net return is 2.50% x 0.70 = 1.75% net. This is below the Livret A (2.40% net), but the accumulated capital and earned interest justify keeping it.
Should You Open a PEL in 2026?
Arguments in Favour
- Guaranteed rate: the 1.75% rate is fixed and guaranteed, which could become attractive if rates fall sharply in the coming years
- Forced savings: the mandatory deposits instil savings discipline
- Preferential-rate loan: useful if you have a property project in the medium term and rates rise above 3%
- Reserving your rights: opening a PEL now and letting it run for at least 4 years activates your loan entitlement if needed
Arguments Against
- Mediocre net return: 1.225% net versus 2.40% for the Livret A
- Locked funds: early withdrawal before 4 years means losing loan rights and the premium
- Mandatory deposits: a constraint if your income is irregular
- Limited loan advantage: the preferential rate is not always competitive
- High ceiling but low return: 61,200 euros tied up for a net return lower than the Livret A
Our Analysis
For the majority of savers in 2026, the PEL is not the best choice as a pure savings product. The Livret A, LDDS, and LEP all offer superior net returns with full availability.
The PEL remains relevant in two cases:
- You have a property project in 4 to 8 years and want to lock in a guaranteed loan rate
- You are betting on a sustained rate decline: if regulated account rates fall back to 0.50% as they did in 2020, your PEL at 1.75% gross will regain its appeal
Claire, 26, a financial analyst in Bordeaux, wants to buy a flat in 5 years. She opens a PEL with monthly deposits of 200 euros. In 5 years, she will have accumulated approximately 12,700 euros (12,000 euros in deposits plus 700 euros in net interest) and will have the right to borrow at 2.95% on a maximum of 92,000 euros.
What to Do With an Existing PEL?
PEL Opened Before 2011 (Rate > 2.50%)
Keep it carefully! These older PELs offer savings rates of 2.50% to 4.75% with income tax exemption during the first 12 years. Even after 12 years, the net return remains attractive.
PEL Opened Between 2016 and 2022 (Rate at 1%)
With a net return of 0.70% (1% x 0.70), these PELs are significantly less profitable than the Livret A. Unless you have a property project requiring the 2.20% loan, it may be wise to close it and redirect the funds to a Livret A, an LDDS, or a life insurance contract.
PEL Opened in 2023 or 2024 (Rate of 2% to 2.25%)
These PELs offer a net return of 1.40% to 1.575%. This is below the Livret A, but if you are close to the 4-year holding period, wait to secure your loan entitlement before making a decision.
Conclusion
The PEL is a savings product that has lost its former lustre. In 2026, its net return of 1.225% cannot compete with the Livret A (2.40%) or the LEP (3.50%). It nonetheless remains a relevant tool for savers with a medium-term property project, thanks to its guaranteed-rate loan entitlement. For everyone else, prioritise regulated savings accounts and life insurance before considering a PEL.
Disclaimer
The information presented in this article is provided for informational and educational purposes only. It does not constitute personalised investment advice. The rates and conditions mentioned are those in effect at the time of writing and are subject to change. Consult your bank for the exact current PEL conditions.