See a table of Sharesave bonus rates
The bonus rates for 3, 5 and 7 year SAYE contracts are adjusted automatically on an annual basis by linking them to 3, 5 and 7 year market swap rates (the market reference swap rates).
The bonus rates are adjusted to maintain the following gaps in basis points (bp) under the market reference swap rates:
|
Contract type |
Basis point margin under market swap rate |
|---|---|
| 3 year | 205bp under 3 year market reference swap rate |
| 5 year | 175bp under 5 year market reference swap rate |
| 7 year | 165bp under 7 year market reference swap rate |
The market reference swap rate for the relevant 3, 5 or 7 year SAYE contract is the average over the last 10 working days of June for the new bonus rates which come into force on 1 September the same year.
The mechanism allows for bonus rates to be adjusted during the twelve month period if the market reference swap rates move dramatically. This adjustment is triggered if the 3 or 5 year swap rates (measured as an average over a rolling 30 day period), are greater than or equal to 125bp below or above their reference levels at the start of the 12 month period (or any adjusted level which may be in force).
If this trigger condition is met, the bonus rates are reset to maintain the 205bp, 175bp and the 165bp gaps under the new reference swap rate as appropriate, which is the average swap rate over the last 10 working days of the 30 day period. The bonus rates will then generally apply until the annual reset.
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