Housing savings account

By Published Credit, Mortgage, Mortgages in France

The housing savings account (CEL) is a product of housing savings french exists since 1 st January 1965 1 . As with the housing savings plan (PEL), after a savings phase, the holder can obtain a housing savings loan .

Characteristics

The home savings account is a government regulated investment. It requires a minimum amount in unblocked deposit.

The beneficiary of a CEL must be a natural person (legal persons can not hold CEL). Each person can open a single CEL 2 .

The maximum amount that can be saved on a CEL is € 15,300 and the minimum savings period to obtain a home savings loan is 18 months.

Regarding the payments, at the opening of the CEL, the minimum is 300 €.

Opening conditions

The CEL can be opened by any physical person, even minor when his habitual residence is in France. In case of possession of an ELP, the opening of a LEC must be done in the same institution 3 .

A holder can only hold one CEL and can not open another one with another bank. The accumulation of some savings products such as the young booklet is possible 4 .

There are no opening or closing costs.

Payments

The minimum payment at the opening is 300 € . Subsequent payments or withdrawals are at least € 75 , while respecting a permanent balance of at least € 300 . The ceiling for payments is € 15,300 (excluding capitalization of interest).

Remuneration

  • Interest rate: 0,50% from 1 st August 2015 (excluding any premium for the state). The calculation formula is 2/3 of the rate of the livret A rounded to the nearest quarter of a point. This interest rate, which was revisable every 6 months until the end of 2008 (see table below) is now revisable at the discretion of the government.
  • Calculation of interest: the interest is calculated according to the fortnight rule.
  • In the event of loan completion, the State increases the remuneration by 50% in the form of a premium paid on completion of the loan, up to a limit of € 1,144 . At the current rate, the bank pays 0.50% and the State adds 0.25%, which makes a total gross remuneration of 0.75% excluding social security contributions.

Evolution of remuneration

Of the Gross remuneration Net gain
1 st August 2015 0.50% 0.42%
1 st August 2013 July 31, 2015 0.75% 0.63%
1 st February 2013 July 31, 2013 1.25% 1.06%
1 st July 2012 January 31, 2013 1.50% 1.27% 5
1 st October 2011 June 30, 2012 1.50% 1.30% 6
1 st August 2011 September 30, 2011 1.50% 1.32%
1 st August 2010 July 31, 2011 1.25% 1.10% 7
1 st August 2009 July 31, 2010 0.75% 0.66%
1 st May 2009 July 31, 2009 1.25% 1.10%
1 st February 2009 April 30, 2009 1.75% 1.54%
1 st January 2009 January 31, 2009 2.75% 2.42% 8
1 st August 2008 December 31, 2008 2.75% 2.45%
1 st February 2008 July 31, 2008 2.25% 2.00%
1 st August 2007 January 31, 2008 2.00% 1.78%
1 st August 2006 July 31, 2007 1.75% 1.56%
1 st February 2006 July 31, 2006 1.50% 1.34%
1 st August 2003 July 31, 2005 1.25% 1.11%
1 st January 2005 July 31, 2005 1.50% 1.34% 9
1 st August 2003 December 31, 2004 1.50% 1.35% 10
1 st July 2000 July 31, 2003 2.00% 1.80%
1 st August 1999 June 30, 2000 1.50% 1.35%
June 16, 1998 July 31, 1999 2.00% 1.80%
1 st January 1998 June 15, 1998 2.25% 2.03% 11
1 st January 1997 December 31, 1997 2.25% 2.16% 12
1 st January 1996 December 31, 1996 2.25% 2.24% 13
February 16, 1994 December 31, 1995 2.25% 2.25%
May 16, 1986 February 15, 1994 2.75% 2.75%
1 st January 1975 May 15, 1986 3.25% 3.25%

Taxation

The interests of the CEL are subject to social security levies in force (15.5%), which are automatically retained each year. Interest is exempt from income tax.

Ready

The home savings loan is not automatic.

The calculation of the borrowing rate is done in proportion to the sums invested, according to the rate of the moment (unlike the ELP for which the rate is fixed and known from the moment of signing): it consists of the interest rate on which the rights to Loans used were obtained, plus 1.5% of costs. For example, loan entitlements acquired in 2008 at a rate of 2.0% qualify for a 3.5% loan.

It is necessary to hold and use a minimum of rights to loan. This minimum depends on the nature of the project: 75 € for an acquisition or construction works, 37 € for repair or improvement works and 22,50 € for energy saving works 14 . In the case of simultaneous use of the rights of several CELs, this minimum must be reached for each CEL 15 .

The maximum amount borrowed is € 23,000 , including in the case of simultaneous use of the rights of several LECs, for a period ranging from 2 years to 15 years. The interest paid on the loan, excluding management fees , is limited to 1.5 times the interest received during the investment period 16 (also called “loan rights”). This “conversion rate” is reduced to 1 for SCPIs . For example, 100 € of rights to loan will open the right to a loan that can cost up to 150 € of interest. At these 150 €interest will be added to the 1.5% management fee (1.7% for the CEL); therefore, if the interest rate was 2.0%, the total amount of interest + management fees payable will be € 150 * (2.0% + 1.5%) / 2.0% = 262 , € 5.

When using a loan from a home savings plan , the sum of the two loans (CEL + PEL) can not exceed € 92,000 . It should be noted that the amount that can be borrowed will be all the more important that the duration of the loan will be short (but high monthly payments).

Moreover, in case of loan (exclusively to finance a purchase or real estate works), the State pays a premium equal to about 14 half of the loan rights used, with however a ceiling of € 1,144 .

If the CEL was opened before the 1 st March 2011, the loan can also affect the secondary residence of the CEL holder 17 .

See also

Related Articles

  • Savings housing plan
  • Mortgage

External links

  • Housing savings account  [ archive ] on the site service-public.fr

Notes and references

  1. ↑ Housing Savings Account Portal  [ archive ]
  2. ↑ http://edubanque.com/banque/savings-accounts/patient-payment-instruments/accounts-accounts-accounts.html  [ archive ]
  3. ↑ http://www.legifrance.gouv.fr/affichCodeArticle.do;jsessionid=CD56CF133A3679DF3FADDCC495AF6C67.tpdjo05v_3?idArticle=LEGIARTI000006897012&cidTexte=LEGITEXT000006074096&dateTexte=20120206  [ archive ]
  4. ↑ Description of savings account housing  [ archive ]
  5. ↑ Passage of the social contributions rate from 13.5% to 15.5%
  6. ↑ Passage of the social contributions rate from 12.3% to 13.5%
  7. ↑ The passage of the payroll tax rate from 12.1% to 12.3% in the 1 st January 2009 increased the net pay of 1.09875% to 1.09625%
  8. ↑ Passage of the social contributions rate from 11% to 12.1%
  9. ↑ Passage of the social contributions rate from 10.3% to 11%
  10. ↑ The passage of the payroll tax rate from 10% to 10.3% in the 1 st July 2004 increased the net return of 1.35% to 1.3455%
  11. ↑ Passage of the social contributions rate from 3.9% to 10%
  12. ↑ Passage of the rate of social contributions from 0.5% to 3.9%
  13. ↑ Establishment of social contributions of 0.5%
  14. ↑ a and b http://www.cbanque.com/credit/pret_account_accounting_account.php [ archive ]
  15. ↑ http://www.bnpparibas.net/banque/portail/particulier/Fiche?type=folder&identifiant=Pret_Compte_Epargne_Logement_20030116165230&bloc=Condition_souscription  [ archive ]
  16. ↑ Article R315-12 of the Code of Construction and Housing  [ archive ]
  17. ↑ housing savings account: account usage  [ archive ]

Leave a Reply

Your email address will not be published. Required fields are marked *