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

PEL closure: what's happening in March 2026?

From March 2026, PEL (Home Savings Plans) opened before January 1, 2018 and having reached their maximum term may be automatically closed by banks. This measure affects millions of savers. Explore our banking section for all savings and financial information.

Which PELs are concerned?

PELs over 15 years old: Plans opened before 2011 that have reached their maximum term.

Dormant PELs: Plans with no activity for several years.

Old generation PELs: Those at 2.5% rate or more (opened before 2015).

Why this measure?

Regulatory simplification: Old PELs create complex management for banks.

Rate harmonization: Old rates (up to 2.5%) are no longer economically sustainable.

Encouragement to reallocate: Push savers to redirect their money to other products.

What are your options?

Option 1: Let it close and recover funds

Your accumulated capital (deposits + interest) will be transferred to a current account or a holding account. You'll then be free to reinvest elsewhere.

Advantages: Simplicity, immediate availability

Disadvantages: Loss of PEL advantages (rate, loan rights)

Option 2: Use your home loan rights

If you have a real estate project, your PEL gives you the right to a home loan at a preferential rate.

For old PELs (pre-2016):

Loan rates of 4.20% to 2.07% depending on opening date
Not always competitive with current rates

What to do:

Compare your PEL rate with current market rates
Calculate total loan cost
Decide based on your project

Option 3: Anticipate and transfer

Before closure, you can transfer your funds yourself to:

A Livret A (1.5% tax-free in 2026)
A LEP if eligible (4% in 2026)
Life insurance
A new PEL (1% rate in 2026)

What to do with your savings after PEL?

Guaranteed savings products

Learn more about Livret A and LEP rates in 2026 for detailed information.

Livret A: €22,950 ceiling, 1.5% rate, tax-free

LDDS: €12,000 ceiling, 1.5% rate, tax-free

LEP: €10,000 ceiling, 4% rate (income conditions)

Life insurance

Euro funds: Secure capital, around 2.5% return in 2026

Units of account: Higher potential return but capital risk

Advantages: Flexible taxation after 8 years, transmission

For a real estate project

Open a new PEL: 1% rate, loan rights after 4 years

Boost your down payment: Available savings for a better loan

Important things to know

Accrued interest

All interest earned remains yours. Closure doesn't cause you to lose accumulated gains.

State premium

Old PELs (before 2018) benefit from a state premium paid at loan closing. Check if you can still benefit from it.

Taxation

PELs over 12 years old are subject to social security contributions on annual interest. At closure, no additional taxation.

Closure deadline

Banks must notify you at least 2 months in advance. You have time to organize your savings.

Frequently Asked Questions

Will I lose money if my PEL is closed?

No, you'll recover all your capital and accrued interest. No penalty.

Can I refuse PEL closure?

If closure conditions are met (maximum term), the bank can close. You can negotiate a delay.

Is a new PEL worth it?

With the current 1% rate, interest is limited. But loan rights can be useful for a future real estate project.

How long do I have after closure?

Your funds will be available immediately. No deadline to reallocate them.

What's the current best alternative for savings?

The LEP (4%) if you're eligible, otherwise the Livret A (1.5%) for available savings, or life insurance for longer term. Also learn how to reduce bank fees.

Checklist before closure

Check your PEL's exact closing date
Calculate total accrued capital
Evaluate your home loan rights
Compare with your real estate projects
Choose your reallocation strategy
Inform your bank of your decision
Track fund transfer

Sources and References

The information provided in this article is for guidance only. Each situation is unique; we recommend consulting a financial advisor for personalized advice.