The Treasury has raised the bonus rates payable on Save As You Earn (SAYE) schemes for employees who join an SAYE scheme after 1 September 2008.
The new effective bonus interest rates are as follows:
- For 3-year plans, 4.23% (previously 2.84%);
- For 5-year plans, 4.36% (previously 3.22%); and
- For 7-year plans, 4.28% (previously 3.36%).
Early leavers (employees who withdraw their funds after 12 monthly contributions, but before the third anniversary), receive a bonus rate of 3% (previously 2%).
Participants in SAYE schemes receive the bonus rate that was in force at the time they joined the scheme and are not affected by future bonus rate changes.