PEL Automatic Closure March 2026: What to Do with Your Savings

From March 2026, French banks may automatically close PEL (Plan Epargne Logement) accounts opened before 1 January 2018 that have reached their maximum 15-year duration, in line with the rules of the Code monetaire et financier. Holders keep all their capital and accumulated interest — there is no penalty. Funds are credited to the current account, and PEL home-loan rights linked to the plan expire at closure. Holders typically have at least two months' notice from the bank to decide whether to use any home-loan rights, transfer savings to a Livret A, LEP, LDDS, or life-insurance contract, or open a new PEL under current 2026 rules. Visit our banking section for related guides.

> **Key takeaways**

> - PELs opened before 2018 and over 15 years old may be closed by the bank from March 2026.

> - No penalty: capital plus accumulated interest are credited back to the account holder.

> - Banks must give at least two months' notice before closure (legal information requirement).

> - Home-loan rights linked to the PEL expire at closure — use them before that date if useful.

> - Reallocation options in 2026: Livret A, LDDS, LEP (if eligible), life insurance, new PEL.

What Changes in March 2026

The 15-year maximum life of a PEL is set by Article L221-3 of the Code monetaire et financier on Legifrance. Once the maximum duration is reached, banks are allowed to convert or close the plan. From March 2026, many old PELs reach this threshold simultaneously, hence the wave of expected closures.

Which PELs Are Affected

**Old PELs (pre-2018)** that have reached their 15-year maximum duration
**Dormant PELs** with no movements for several years
**PELs at higher historical rates (pre-2015)** that the bank chooses to close at maturity

Why Banks Are Doing This Now

Regulatory simplification of legacy products
Higher legacy rates that are costly to maintain
Encouragement to reallocate savings into current products

Your Options Before Closure

Option 1 — Let the Bank Close and Receive the Funds

Your capital and accumulated interest are credited to the linked current account. You can then reallocate freely. You lose the PEL's historical rate and home-loan rights.

Option 2 — Use Your Home-Loan Rights

The PEL gives you the right to apply for a home loan at a rate fixed when the PEL was opened. For old PELs the loan rate ranges from about 2.07% to 4.20% depending on the opening year — sometimes competitive with 2026 rates, sometimes not. Compare with current rates in our mortgage rates 2026 guide.

Option 3 — Transfer Funds Yourself

Before automatic closure, you can move funds to:

A **Livret A** (regulated, tax-free, cap EUR 22,950)
A **LEP** if eligible (higher rate, cap EUR 10,000) — see our Livret A, LDDS, LEP guide
A **LDDS** (cap EUR 12,000)
A **life-insurance contract** (longer horizon, mixed risk profile)
A **new PEL** under the current rate set by the State for 2026

Important Points

Accrued Interest

All interest already booked stays yours at closure. No penalty applies for closure at maximum term.

State Premium (Prime d'Etat)

Pre-2018 PELs may still entitle the holder to a State premium when a home loan is taken from the plan. After closure with no loan, the premium is lost. Check eligibility with your bank.

Taxation

PELs over 12 years old are subject to social contributions on annual interest. At closure, no additional taxation applies for plans opened before 2018 (which keep their original tax treatment) — verify the exact rules with the Service-Public.fr PEL page.

Notice Period

Banks must inform you at least two months before closure under their general information obligations supervised by the ACPR (French Prudential Authority).

If you own your home and are considering energy renovation, your freed-up PEL savings could also fund works eligible for the MaPrimeRenov' 2026 grant programme.

Checklist Before Closure

Check the exact closure date on the bank's notification.
Calculate accumulated capital and interest.
Evaluate any remaining home-loan rights.
Decide if reallocation to a Livret A, LDDS, LEP, life insurance, or new PEL fits your goals.
Communicate your decision to the bank in writing.
Track the actual transfer to confirm the right amount is credited.

Frequently Asked Questions

Will I lose money if my PEL is closed automatically in March 2026?

No. Your capital and accumulated interest are transferred to your current account in full. No penalty applies for closure at maximum term.

Can I refuse the automatic PEL closure?

If the legal closure conditions (maximum 15-year duration, dormancy) are met, the bank can close. You can ask for a short extension or use your home-loan rights before closure.

How much notice does the bank have to give before closing a PEL?

At least two months, in line with general information obligations supervised by the ACPR. The notification arrives by post or via the secure online banking space.

Is opening a new PEL in 2026 worth it?

Depends on your goals. The new-generation PEL has a lower fixed rate than older plans but still provides home-loan rights after 4 years. Compare with a Livret A, LEP, or life insurance based on your timeline.

What happens to my PEL home-loan rights if I let the plan close without using them?

The home-loan rights linked to the plan expire at closure. To preserve them, you must request the loan before the closure date set by the bank.

Where can I check the current Livret A and LEP rates?

On the Banque de France website and on Service-Public.fr. Rates are revised periodically by the State.

Sources

This article is for general information only and is not financial advice. PEL rules, rates, and tax treatment can change — confirm with your bank or a qualified advisor before deciding.