Sharesave

bluecounty

Hi everyone,

Just after a bit of advice from you all really. I work for a bank (Barc) and have the opportunity to invest in a sharesave scheme. The way the sharesave works is pretty simple really. At the end of August, the bank will discount the current share price by 20% (today's share offer price would be £2.73) then you can invest anything from £5 to £250 per month over 3,5 or 7 years. At the end of the period, you can use your savings and bonus to purchase shares at the offer price (£2.73) then the following day, you can sell the shares bought at £2.73 each for the current price that day, depending on what the price is 3,5 or 7 years down the line

Do you think this this a good investment?

cashprincezac

Yes...bank shares are oversold currently (and possibly will heavily fluctuate over the next 18 months)

You can't lose...even if the price does fall you can get you cash back with interest.

I did this a few years ago and saved £250 per month for 5 years and doubled my money...this made me 35k which was a deposit for a house.

Fill your boots!!

gazza975526570

Id echo the above. My own view is that Banking shares over the next three years will increase. In addition you can always just take your money and run at the end of the period if there is no benefit in taking the shares - plus yu normally get a small bonus at the end of the plan

otb666

me and hubby always do this through our works--also you do not pay tax on the money you are paying each month-we have always made money this way

gazza975526570

otb666 wrote: »

me and hubby always do this through our works--also you do not pay tax on the money you are paying each month-we have always made money this way

I believe they are only tax free when you cash them in if you have held them for a period of time - i could be wrong with the detail though

djuluvme

I saved in a sharesave for 5 years and at the end managed to double my money (12k in total). Deffinatley go for it, and if the share price they offer you is really low then all the better.

Yes you are right in saying that the money you get at the end is tax free, but you also get tax relief in your wages.

For example if you get paid £1000 a month and save £250, you only get taxed on the remaining £750.

Another tip is at the end of the scheme if you choose to take the shares, transfere them in to an maxi ISA then you won't have to pay any capital gains tax.

Cook_County

Just remember the old rule about not putting all your eggs in one basket.

Your salary comes from Barclays. Doubtless so does your pension plan. If they hold much of your investments & they go bust you go down with them.

This is not impossible. It is exactly what happened at Enron.

Do keep a balanced portfolio.

daviduk_2

Yes as others have said go for it. For those lucky enough to be offered them they can be a great investment.

danny69

I am in one at the moment with my employer, its definately worth it. If, say, halfway through the period the shares have fallen a lot and theres not much chance of a reasonable recovery, you can just end it halfway through and get all your cash back. I didnt realise the payments into it were tax free, are you sure guys? I thought the money made from the sold shares was tax free due to the payments been taxed originally, please correct me if im wrong! I am set to make about a 70% profit at current prices on a 3 year scheme,but even if the price falls a lot you will still get your money back.

danny69

Is it the case that upon selling the shares, these are subject to the new flat rate of 18% CGT?

Chris_K_5

Hi,

My girlfriend currently has a sharesave scheme with the bank of scotland. She got her shares for £5.08 when they were worth quite a bit more than that. She has about £1000 saved already, the first set start to mature next year but the current share price has plummeted to around the £3 mark. She can withdraw the money she has put in at any time and will recieve interest on any money saved for over a year. Would it make sense to withdraw this £1000 and buy the shares at £3 or keep them in untill the end of the plan and pay the £5?

Thanks