The home savings account includes two distinct products, the PEL and the CEL, whose mechanisms differ significantly in terms of remuneration, taxation, and access to loans. For a young saver in 2024, the question is not whether these products exist, but whether they are still worth tying up capital compared to the Livret A, LEP, or Livret Jeune.
PEL and CEL Rates: A Marginal Net Return
The PEL opened since 2024 offers a gross rate that, after applying the flat tax of 30%, results in a net return significantly lower than that of the Livret A. The CEL, which has a rate rising to 1.25% on August 1, 2026, following the Livret A, also remains below the tax-exempt savings accounts.
Related reading : The latest fashion trends to adopt for a stylish everyday look
We observe that the net remuneration of the PEL no longer has any comparative advantage since the interest is subject to social contributions and income tax for plans opened after 2018. A young person with an LEP (ceiling of 10,000 euros, significantly higher rate, and tax exemption) or even a simple tax-exempt Livret A has no objective interest in yield to favor home savings as a precautionary investment.
The detailed analysis provided on the LEL on Infos Investisseurs confirms this observation by comparing net returns after taxation over several horizons.
Recommended read : Key Steps to Secure a Mortgage Easily and Quickly in 2024
Mortgage Loan Rights: The Only Remaining Technical Argument
The right to a loan is the only valid reason to open a PEL or CEL today. The PEL allows borrowing at a rate set at the time of opening, which can be advantageous if market rates rise at the time of property purchase. The CEL, on the other hand, grants loan rights proportional to the interest accrued, with a borrowing limit capped at 23,000 euros.
For a young person aged 20 to 25 without a short-term property project, this mechanism poses a concrete problem. The PEL requires a minimum savings phase of four years with regular deposits. If the property project materializes in eight or ten years, the guaranteed loan rate will be the one set at the opening, which may not be competitive compared to current bank offers.
We recommend considering the PEL as a loan vehicle only if the young saver has reasonable visibility on a purchase within four to six years. Beyond that, the opportunity cost (capital tied up at low yield) far outweighs the benefit of the guaranteed rate.
Cumulative PEL and CEL: A Subtlety Often Misused
A saver can simultaneously hold a PEL and a CEL in the same institution. The loan rights accumulate, which can increase the total borrowable amount. In practice, reaching the caps requires saving for several years on both accounts, with a PEL capped at 61,200 euros.
For a young worker with a modest monthly savings capacity, tying up capital on two low-yield accounts to accumulate loan rights is rarely a relevant trade-off.
Massive Decrease in PEL: A Signal Not to Be Ignored
In 2024, 2.4 million PELs were closed in a single year. This decrease reflects the structural disinterest of savers in a product whose remuneration no longer compensates for the immobilization of capital and whose loan rights are perceived as uncompetitive compared to current bank rates.
This trend particularly affects young holders of old PELs, opened at floor rates, who prefer to reallocate their savings to more rewarding or more liquid accounts.
Anti-Duplicate Control on July 1, 2027
A regulatory change deserves attention. Starting from July 1, 2027, an automated anti-duplicate control will be mandatory for all regulated savings accounts: PEL, CEL, LEP, LDDS, Livret Jeune, PEA. Banking institutions will have to systematically check that a saver does not hold two identical products in different banks.
For young people who may have opened a PEL or CEL in a parental bank and then a second one in their own institution, regularization will be enforced. Anticipating this deadline avoids administrative complications and potential tax penalties.
Home Savings Account or Alternatives: What Trade-Off for a Young Saver
Rather than a general table, here are concrete decision criteria based on the profile:
- Modest income (eligible for LEP): the LEP offers a net rate higher than all regulated savings accounts, with a ceiling of 10,000 euros. Absolute priority over any other investment.
- Under 25 without a property project: the Livret Jeune (ceiling 1,600 euros) and Livret A cover liquidity and precautionary savings needs at a net yield higher than the PEL.
- Identified property purchase project in four or five years: the PEL regains interest if the guaranteed rate at opening is lower than market rate projections. The CEL can complement by offering flexibility on withdrawals.
- Long horizon without a specific project: life insurance in units of account or a PEA for more experienced profiles offers unmatched yield potential, with favorable taxation after five to eight years of holding.
The home savings account is not a bad product in itself. It has simply become a niche product, reserved for a specific use case: locking in a mortgage rate in an anticipated rising rate environment. For all other scenarios, a young saver should prioritize exhausting their tax-exempt accounts before considering the PEL or CEL. The massive decrease observed in 2024 only confirms this assessment.