David, a Capital reader, asks us the following question: “Hello, after 10 years of PEL for my children, I have just made the last payments before maturity. At the time, the PEL rate was 2.50% and more advantageous than the Livret A (which was then at 0.75% I think). Today, PELs reach 7,000 euros and I am wondering what is more interesting for my children. Should I keep their PEL or close it and pay the money into their Livret A?”
Hello David, and thank you for sending us this question, which you are probably not the only one to ask. Indeed, as you recall, the Housing Savings Plans (PEL) opened between August 1, 2003 and January 31, 2015 benefited from a remuneration of 2.50%, while the rate of the Livret A was, between August 1, 2014 and August 1, 2015, 0.75%. In terms of yield, there was no comparison at the time! But today, the rate of the Livret A has moved back in front, with 3% since August 1, 2023.
At first glance, switching from one investment to another would seem logical to boost the return on your children’s savings. Be careful, however, because these products, although both regulated – that is to say guaranteed by the State and available in all banks under the same conditions -, turn out to be very different. First, the remuneration of a PEL is fixed when it is opened and does not change thereafter, while that of a Livret A can vary upwards or downwards up to twice a year, depending on (…)
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