Schedule 3 SAYE option schemes: Linkage to savings (arrangement): Bonuses and interest
Bonus rates are expressed as the number of monthly contributions comprised in 3 or 5 year bonuses.
If the savings contract is completed and the 36 or 60 monthly contributions made, the employee is entitled to a bonus equivalent to the specified number of monthly contributions referred to in the relevant prospectus.
If the contributions are repaid after 3 years or 5 years, as applicable, a bonus is payable.
If application for repayment is made before the 3 or 5 year point, the employee is not entitled to any bonus, but is entitled to interest. The relevant percentage rate of interest is specified in the relevant prospectus (PDF 102KB) https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/387467/saye-prospectus.pdf
Bonuses and interest received are not taxable (Section 702 ITTOIA 2005).
The 7 year savings feature was abolished with effect from 23rd July 2013.