Subsection 2: People's savings plan

The people’s savings plan entitles the holder, in return for payments into an account opened with or under a life insurance contract taken out with bodies governed by the Insurance Code or the Mutual Insurance Code, credit institutions, the Banque de France, a competent public accountant, investment services providers other than portfolio management companies or institutions carrying out provident operations and covered by article L. 731-1 of the Social Security…

Payments made by plan holders whose tax domicile is in France and whose tax assessment in respect of income for the penultimate year does not exceed the limit mentioned in 1 bis of article 1657 of the General Tax Code are entitled to a premium equal to one quarter of their annual amount for the first seven years, or for the first ten years if a life insurance policy with…

Any withdrawal of funds will result in the closure of the plan. The plan is closed on the death of the holder. Withdrawals after the tenth year do not result in closure of the plan. However, no payments may be made after the first withdrawal.

Establishments managing people’s savings plans which are unable to produce the supporting documents provided for in the contract within three months of a request from the relevant departments or supervisory bodies must repay to the State the premiums for which the supporting documents are missing, together with their capitalised interest. These provisions apply to agreements signed by these establishments with the State before 1 January 1997 for sums paid from…

Under certain conditions, the popular savings plan entitles the holder to tax benefits and, for plans opened after 22 September 1993, to a savings bonus. The operation of people’s savings plans is subject to documentary and on-site inspections by the Inspectorate General of Finance.

A Conseil d’Etat decree specifies the eligible transactions covered by the Mutual Insurance Code, Title III of Book VII of the Social Security Code or Article 1050 of the Rural Code and the procedures for applying this sub-section, in particular the reporting obligations of taxpayers and intermediaries.