Are you looking for new ways to save for the medium to long term beyond obvious options such as individual savings accounts (ISAs) and private pensions? If you work for one of the 1,000-plus employers in the UK that offers an employee share scheme, joining it could make sense. These schemes, which must be aimed at all employees (not just top executives), can even be combined with ISAs to maximise tax efficiency.

There are two options here. The simplest scheme is a save-as-you-earn (SAYE) plan, sometimes known as Sharesave. You save up to £500 each month into the scheme’s nominated savings account, typically for three to five years; the money usually attracts a fixed rate of interest, and some schemes offer a tax-free bonus at the end of the plan. At this stage, you can invest your savings into shares in your employer at a price agreed before the plan began. This price can be set at a discount of up to 20% of the share price at the start of the scheme.

Minimal risk with SAYE schemes