The Mauve Square is the commercial name for the Home Savings Plan (PEL) at Crédit Agricole. Calculating the Mauve Square rate involves understanding how the remuneration of this regulated savings is determined, and especially how to deduce the associated mortgage rate. The product sheets distributed by the regional banks often remain vague on this calculation mechanism, complicating the task for savers.
Mauve Square Rate: A Fixed Regulatory Margin to Understand
The remuneration rate of a PEL, including under the Mauve Square name, is set by regulation at the time of the plan’s opening. This rate remains guaranteed for the entire duration of the contract, regardless of subsequent changes in benchmark rates.
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The formula for calculating the home savings loan rate is based on a simple principle: loan rate = PEL savings rate + fixed regulatory margin. This margin covers the bank’s management fees. Its exact value depends on the generation of the PEL, meaning its opening date.
The “Mauve Square” sheets distributed by the various Crédit Agricole branches do not detail this margin. To find the guaranteed loan rate, one must refer to the general conditions of the contract signed at the opening or directly consult their advisor. Those looking to delve deeper into the calculation of the mauve square on Buzzarium will find additional insights into this mechanism.
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In practice, the calculation boils down to an addition. If your PEL was opened with a given savings rate, you add the corresponding margin for your plan generation to obtain the loan rate. This rate is fixed upon subscription.
Why the Opening Date of the PEL Changes Everything for Calculation
A PEL opened ten years ago does not operate with the same parameters as a plan subscribed recently. Each generation of PEL has its own savings rate and its own loan rate, both defined by decree at the time of opening.
The oldest plans sometimes benefit from savings rates higher than those offered today, but their associated loan rates are also higher. Conversely, recent PELs show increased savings rates compared to the years of very low rates, which mechanically alters the yield.
Identifying the Generation of Your Mauve Square
To calculate the applicable rate for your situation, you need two pieces of information:
- The exact opening date of your PEL, available on your account statement or your initial contract
- The savings rate mentioned in the specific conditions signed at subscription
- The regulatory margin associated with this generation, which can be consulted with your bank or in the official texts of the Construction and Housing Code
Without these elements, any calculation remains approximate. The data available online do not always cover the most recent generations, as the PDF memos from the regional branches of Crédit Agricole are not systematically updated.
Real Yield of the Mauve Square: What the Gross Rate Does Not Indicate
The rate displayed on your contract is a gross rate. To assess the real yield of your savings, it is necessary to incorporate the applicable taxation. The interest from a recently opened PEL is subject to the flat tax, which reduces the net yield received by the saver.
Plans opened before a certain date benefited from an income tax exemption during the first years. This generational distinction has a direct impact on the net profitability of the investment.
Capitalization of Interest and Payment Cap
The payment cap for the Mauve Square PEL is set at 61,200 euros. Only the capitalization of interest can push the balance beyond this amount. This capitalization mechanism influences the overall yield over the duration of the plan, as the earned interest generates additional interest.
Mandatory regular payments, with a minimum of 540 euros per year, are required to maintain the plan. A failure to make payments can lead to early closure, resulting in the loss of loan rights if it occurs before three years.
Home Savings Loan of the Mauve Square: Restriction to Primary Residence
The calculation of the Mauve Square rate is only of practical interest if you plan to use the accumulated loan rights. A regulatory restriction now limits the use of the PEL loan to operations intended for the primary residence: purchase in new or old, construction, or certain renovations.
The home savings loan from a PEL no longer finances a secondary residence or a rental investment. This evolution changes the relevance of the calculation for savers whose project does not concern their primary residence.
- Purchase or construction of a primary residence: the PEL loan remains usable at the guaranteed rate
- Improvement or extension work on the primary residence: eligible under conditions
- Secondary residence or rental investment: the PEL loan is no longer available
This restriction prompts some Mauve Square holders to consider closing their plan rather than keeping unusable loan rights. The decision depends on the guaranteed savings rate, the net yield after taxation, and the horizon of the real estate project.
Before closing an old PEL with an attractive savings rate, a comparison with available market investments is worth making. A Mauve Square whose net yield remains competitive retains its value as an investment, even if the loan right no longer corresponds to the initial project.