The reduction in the PEL rate may discourage new subscribers, especially as it becomes less competitive against other savings products.
The PEL remains a viable option for long-term savers looking to accumulate a significant amount for real estate projects, despite the lower interest rate.
As inflation rates stabilize, the attractiveness of various savings products will continue to shift, potentially leading to further adjustments in rates for PELs and other savings accounts.
The trend of declining interest rates may prompt savers to seek alternative investment options that offer better returns.
The annual nominal interest rate for Housing Savings Plans (PEL) opened from January 1, 2025, will decrease to 1.75%, down from 2.25%. This change, announced in the Official Journal, reflects a significant shift in the attractiveness of this savings option for potential home buyers and renovators. The new rate will only apply to PELs opened in 2025, while older plans will retain their higher rates: 2.25% for those opened in 2024, 2% for 2023, and 1% for accounts opened between August 2016 and December 2022.
The decrease in the PEL rate comes amid projections of lower inflation rates, with the Banque de France estimating an average inflation rate of 2.4% for 2024. This means that the PEL's yield will not keep pace with inflation, making it a less attractive option compared to other savings accounts like the Livret A and the LDDS, which may see rates around 2.5% starting February 2025. Despite this, the PEL allows for a higher contribution limit of 61,200 euros, compared to 22,950 euros for the Livret A.
