SAYE savings accounts protected

The Financial Services Compensation Scheme has confirmed that the saving of 2.3m people accruing cash in Save As You Earn accounts will get the same protection as other depositors. ifs ProShare, the employee share ownership body has welcomed a statement from the FSCS confirming protection.

The FSCS pointed out 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.

The FSCS said: “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.” Phil Hall, Head of ifs ProShare says: “We have been liaising with the FSA, Treasury & HMRC on this issue for several months and we are naturally pleased with the outcome. “Whilst it was always our belief that such savings were protected, it is very helpful indeed to have this clarification. Employees can now have absolute certainty that their SAYE plan savings are protected.”