In a move aimed at promoting environmental sustainability and encouraging young people to save, the BPCE group - Banque populaire Caisse d’épargne - is rolling out the Plan d’Épargne Avenir Climat (PEAC), a new savings product designed specifically for individuals under 21 years old. This initiative, particularly targeted at branches in Brittany and the Pays de la Loire, marks a significant step in integrating financial products with ecological considerations.
The PEAC was first announced in the Journal officiel in June 2024, but it is only now that the bank has begun to actively promote its availability. Starting from July 1, 2025, young individuals will have the opportunity to invest in this plan, which allows for contributions of up to €22,950, mirroring the limits set for the popular Livret A savings account.
One of the unique features of the PEAC is its accessibility, as individuals can open an account with a minimum deposit of just €100. However, the funds deposited will be locked until the account holder reaches the age of 18. This means that parents can initiate the account for their minor children, ensuring that their savings are safeguarded until they come of age.
Withdrawals from the PEAC will only be permissible after a minimum holding period of five years, a stipulation that encourages long-term savings. The interest earned on the PEAC is also a significant draw for potential investors, as it is entirely tax-free, making it an attractive option for families looking to secure their children’s financial future.
According to BPCE, the funds placed in the PEAC will be allocated between the 'Ecofi Agir Pour le Climat' unit-linked support and the BPCE Vie euro fund. The latter has demonstrated a solid performance, offering a return of 2.15% in 2024. It is important to note that while the amounts invested in the euro fund are guaranteed, investments in the unit-linked support carry inherent risks, which could lead to capital gains or losses.
Bruno Le Maire, the former Minister of Economy, emphasized the importance of this financial product, stating, "At the opening of the plan, more aggressive investments may be made. As the holder approaches 18 years old, the funds will be gradually shifted towards safer investments, such as green bonds. The goal is to ensure capital preservation over time." This strategy reflects a careful balance between risk and security, catering to the needs of young savers.
Each individual will be limited to one PEAC account, similar to the restrictions placed on the Livret A and other savings products like the LDDS and LEP. This limitation is designed to streamline the savings process and encourage responsible financial planning among young individuals. Furthermore, the PEAC will automatically close when the account holder turns 30, ensuring that funds are either utilized or transferred to a standard bank account without any additional benefits.
The introduction of the PEAC comes at a time when there is a growing awareness among young people about the importance of environmental sustainability. Many are eager to invest in products that not only secure their financial future but also contribute positively to the planet. As one father noted, "If we want solutions, we must take risks. Sure, there’s a chance that my child might not have everything upon withdrawal, but that’s also what can lead to significant gains." This sentiment reflects a broader trend among families who are looking for ways to engage their children in financial literacy while promoting eco-friendly initiatives.
As the launch date approaches, BPCE is expected to ramp up its marketing efforts to ensure that young people are aware of this innovative savings product. The bank aims to position the PEAC as a viable option for those looking to save while also playing a part in the transition towards a greener economy.
In conclusion, the Plan d’Épargne Avenir Climat represents a forward-thinking approach to savings that aligns financial growth with ecological responsibility. As young individuals prepare to enter the world of finance, products like the PEAC could play a pivotal role in shaping their attitudes towards saving and investing, ultimately leading to a more sustainable future.
