PEL vs term deposit in Morocco: which is better?

Both offer guaranteed rates, but the PEL becomes tax-exempt after 3 years, which term deposits never do. For a 3+ year horizon dedicated to a property purchase, the PEL is clearly superior. Term deposits are more flexible if you don't have a specific real estate goal.

Morocco Housing Savings Plan (PEL) Simulator — net return projection

The Moroccan Plan d'Épargne Logement (PEL) is a government-regulated savings plan designed to finance real estate purchases. It offers a guaranteed interest rate plus full tax exemption after just 3 years — making it one of the most attractive fixed-income products for medium-term savers with a property goal.

Guaranteed rate: ~2.5% to 3.5% per year (fixed at account opening)
Tax before 3 years: 30% on interest (withholding tax)
Tax after 3 years: 0% — full exemption (Finance Act 2026)
Risk: very low — capital guaranteed, state-regulated
Bonus: access to preferential home loan rate after plan maturity

PEL vs term deposit: which is better for buying property?

For investors saving towards a property purchase over 3 to 7 years, the PEL is typically superior to a term deposit: both guarantee the rate, but the PEL eliminates tax after 3 years and grants access to a preferential mortgage. Use our comparator to see both side by side over your target horizon.

Who should consider the PEL?

The Plan d'Épargne Logement (PEL) primarily targets future property buyers: young workers saving for a deposit, couples preparing to buy a main residence, or investors planning a buy-to-let property. Beyond savings, the PEL entitles the holder to a preferential-rate mortgage at the issuing bank — an advantage that can compound significantly over the life of a loan. The tax exemption after 3 years further strengthens its appeal for short-to-medium investment horizons.

How to open a PEL in Morocco?

The PEL can be opened at any Moroccan bank (Attijariwafa, Banque Populaire, CIH, BMCE, Société Générale Maroc). At opening, you set the minimum monthly contribution (typically MAD 200–500 per month) and the commitment period. The interest rate is guaranteed at opening for the life of the plan — compare conditions across at least two banks before subscribing. Contributions can be increased voluntarily, but the monthly minimum must always be met to maintain the plan's benefits.

What is the Moroccan Housing Savings Plan (PEL)?

The Moroccan PEL is a regulated savings plan designed to finance real estate purchases. It offers a guaranteed interest rate negotiated at opening and tax exemption after 3 years. After maturity, savers can access a preferential home loan from the issuing bank.

What interest rate does a Moroccan PEL pay?

PEL rates are guaranteed and negotiated at account opening. They typically range from 2.5% to 3.5% per year depending on the bank. The rate is fixed for the full plan term.

What is the tax on PEL interest in Morocco?

PEL interest is subject to 30% withholding tax in the first 3 years. After 3 full years, all interest becomes fully tax-exempt under the Finance Act 2026 — significantly boosting net returns for long-term savers.

PEL vs term deposit: which is better?

Both offer guaranteed rates, but the PEL becomes tax-exempt after 3 years and grants access to a preferential mortgage — advantages term deposits don't offer. For a 3+ year real estate savings goal, the PEL is clearly superior.

Worked projection: 50,000 MAD invested in a Housing Savings Plan (PEL)

Illustrative scenario computed with our simulator: 50,000 MAD initial capital, 500 MAD monthly contribution, indicative annual return of 3% / yr, taxation 30% → tax-free after 3 yrs (2026 Finance Act). Indicative figures — past performance does not guarantee future results. The tax advantage is decisive: from year 3 onward, gains become fully tax-exempt — hence the estimated 0 MAD tax beyond that threshold in the table.

PEL projection — 50,000 MAD + 500 MAD/mo, 3% / yr
Horizon	Total invested	Gross capital	Estimated tax	Net-of-tax capital	Net gain
1 yr	56 000 MAD	57 604 MAD	481 MAD	57 123 MAD	+1 123 MAD
3 yrs	68 000 MAD	73 513 MAD	0 MAD	73 513 MAD	+5 513 MAD
5 yrs	80 000 MAD	90 404 MAD	0 MAD	90 404 MAD	+10 404 MAD
10 yrs	110 000 MAD	137 338 MAD	0 MAD	137 338 MAD	+27 338 MAD
15 yrs	140 000 MAD	191 858 MAD	0 MAD	191 858 MAD	+51 858 MAD
20 yrs	170 000 MAD	255 189 MAD	0 MAD	255 189 MAD	+85 189 MAD

Over 20 years, a saver who set aside 170 000 MAD in total would build net-of-tax capital of 255 189 MAD — a 1.50× multiple of cumulative savings.

PEL vs other Moroccan products

For the same savings effort (50,000 MAD + 500 MAD/mo), here is the estimated net-of-tax capital under the 2026 Finance Act:

Estimated net-of-tax capital comparison — same investment
Product	Indicative rate	Tax (2026)	After 5 yrs	After 10 yrs	After 20 yrs
PEL	3% / yr	30% → tax-free after 3 yrs	90 404 MAD	137 338 MAD	255 189 MAD
Term deposit	3% / yr	30% withheld	87 283 MAD	129 137 MAD	229 632 MAD
Money-market fund	2.5% / yr	20% redemption gains	86 856 MAD	127 816 MAD	224 304 MAD

Over 20 years, PEL produces 1.14× the net capital of Money-market fund (255 189 MAD vs 224 304 MAD) in this scenario. Adjust these inputs to your profile with our savings comparator.

Other Morocco savings simulators

Term Deposit (DAT) Treasury Bills Equity Savings Plan (PEA) Company Savings Plan (PEE) Full comparator

Related guides

Morocco savings tax guide 2026

Sources: Bank Al-Maghrib — housing credit statistics; Ministry of Finance Morocco — Finance Act 2026. Results are indicative — consult your bank for exact PEL terms.