FSCS confirms 2.3 million SAYE savings accounts are protected

ifs ProShare, which acts as the voice of the employee share ownership industry in the UK, has welcomed the fact that over 2 million participants in Save As You Earn (SAYE) share plans are to have their savings protected by the Financial Services Compensation Scheme (FSCS).

Earlier today the FSCS issued the following statement: "Money deposited via a SAYE scheme that is run in the standard way will be protected in the same circumstances as any other deposit will be.

This is the case regardless of whether the scheme holds the deposit in individual accounts for each employee, or in one common scheme account, provided that the scheme holds full details of the individual depositors and the proportion of the money to which they are entitled.

In particular, it should be noted that any amount deposited with a bank or building society via a SAYE scheme counts towards an individual's compensation limit with that bank or building society".

Phil Hall, Head of ifs ProShare said, "ifs ProShare has been liaising with the FSA, Treasury & HMRC on this issue for several months and we are naturally pleased with the outcome.

Whilst it was always our belief that such savings were protected, it is very helpful indeed to have this clarification. Employees can now have absolute certainty that their SAYE plan savings are protected."

Special thanks go to ifs ProShare members Computershare, Equiniti and Capita who have proved crucial in achieving this result."

An SAYE share plan involves employees saving a fixed monthly amount of between £5 and £250 over a three, five or seven year period. At the end of the three, five or seven year period the employee then decides whether to buy shares in their employer with the money saved or have their savings returned with a cash bonus. According to the most recent ifs ProShare annual survey, there are over 2 million UK employees participating in an SAYE account.

For more information about ifs ProShare, visit ifsproshare.org