Change in bonus rates for Save As You Earn scheme

HM Treasury has announced changes in the bonus rates for the Save As You Earn (SAYE) (Sharesave) scheme that will maintain SAYE in line with other interest rates.

SAYE is one of four tax-advantaged schemes administered by HMRC and is part of the Government's initiative to promote wider employee share ownership across the UK.

The bonus rates were last changed on 4 April 2008.

Employees who sign up to SAYE will receive the bonus rate for the relevant contract that was in force at the time they joined the scheme. They will not be affected by future bonus rate changes.

The Early Leaver Rate, which applies to those who withdraw their funds after 12 monthly contributions, but before the three-year anniversary, have also been adjusted as follows:

Early Leaver Rate Pre-1 September 2008 - From 1 September 2008
2.0% - 3.0%