Interest rates for sharesave schemes increase

HM Revenue and Customs (HMRC) has increased the interest rates payable on sharesave or save-as-you-earn (SAYE) schemes.

Employees that sign up to sharesave will receive the bonus rate that was in place when they joined the scheme and will not be affected by future changes so those in existing sharesave schemes are not affected.

From 1 September, the rates rose to 4,23% for three-year plans, to 4.48% for five-year contracts and to 4.46% for seven years.

Fiona Downes, head of employee share ownership at Ifs ProShare, said: "This is good news for the 500,000 plus 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 investment."