With effect from October 1st 1969, the Government introduced a scheme that was designed to encourage new savings over a contracted period. Although given a name similar to the Government's compulsory method of collecting tax directly from earnings, the savings scheme was not only voluntary and more popular, but the interest earned (known as a 'bonus') was free of tax. Moreover, contributions to the scheme were not restricted to wage or salary earners, but could be paid in cash or by Standing Order from a bank account.

At the commencement of the scheme, savers could save a round pound sum each month, between £1 and £10. At the end of 5 years, a bonus equivalent to one year's contributions were added to the account. Contributions would then cease, but if the accumulated sum was left untouched for a further 2 years, the original bonus was doubled.

A £10 monthly contribution would therefore accumulate to £600 after 5 years, to which would be added bonuses of £120 at Years 5 and 7 - to give a total value of £840, all tax free. (See advertisement below, from Bank's 1970 Annual Report.)

The Bank acted as an agent for the SAYE scheme, maintaining individual account records, but not showing the balances on its own Balance Sheet. The statistics for these contracts are as follows:

	Net Amount Collected £	Number of Contracts
1970	48,863	1,973
1971	269,443	3,237
1972	580,037	4,090
1973	979,513	4,631
1974	1,388,455	4,703
1975	1,608,181	4,597
1976	1,731,000	4,180
1976	1,706,969	3,803
1977	1,466,000	2,969

 

Year-ending figures at March 31st, except last two, which were at November 20th