Approved save-as-you-earn "sharesaver" schemes have had their Treasury determined interest rates low...
Approved save-as-you-earn "sharesaver" schemes have had their Treasury determined interest rates lowered for the first time since October last year.
The new rates on three, five, and seven-year contracts will be applied as of 1 September.
The approved schemes affected allow employees to save money to buy share options in the companies that employ them.
Once the three, five or seven-year contract has expired, the employee can cash in the savings or use the money to buy shares at a pre-determined discounted level.
The Treasury says the rate changes will not affect employees who already signed up at higher interest rates.
Despite the lower rates of interest on the savings, the Treasury will continue to dangle the twin carrots of allowing gains made to be free of income or national insurance tax.
|Contract type||Type bonus rate (previous rates in brackets||Effective interest rate(Previous rates in brackets)|
|3-year||1.8 x monthly payments (2)||3.18% (3.67)|
|5-year||5.7 x monthly payments (6.2)||3.57% (3.99)|
|7-year||11 x monthly payments (11.9)||3.69% (4.07)|
Source: HM Treasury.
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till