Interest rates rise for Employee Share Schemes

ifs ProShare has welcomed the Treasury’s decision to increase the interest rates payable on Save As You Earn (SAYE) Sharesave Schemes.

The increases come into force today and are likely to benefit over 500,000 employees.

96 companies in the FTSE 100 offer an employee share ownership scheme as well as hundreds of other companies across the UK. Approximately 1.7 million employees are currently participating in such a scheme.

Fiona Downes, Head of Employee Share Ownership at ifs ProShare, said; “This is good news for the 500,000+ employees who sign up to a SAYE scheme each year because the revised rates will allow employees to buy more shares under the scheme or receive a greater return on their savings.

This should encourage greater take up of what is already a very tax efficient savings mechanism.”