FSCS confirms that 2.3 million SAYE savings accounts are protected

Earlier today the FSCS issued the following statement:

"Money deposited via a SAYE scheme that is run in the standard way will be protected in the same circumstances as any other deposit will be.   

This is the case regardless of whether the scheme holds the deposit in individual accounts for each employee, or in one common scheme account, provided that the scheme holds full details of the individual depositors and the proportion of the money to which they are entitled. 

In particular, it should be noted that any amount deposited with a bank or building society via a SAYE scheme counts towards an individual’s compensation limit with that bank or building society".

An SAYE share plan involves employees saving a fixed monthly amount of between £5 and £250 over a three, five or seven year period. At the end of the three, five or seven year period the employee then decides whether to buy shares in their employer with the money saved or have their savings returned with a cash bonus. According to the most recent ifs ProShare annual survey, there are over 2 million UK employees participating in an SAYE account.