Sharesave

oblivion_6

I would recommend this as well

I entered one with my current company, a utilities company (boo hiss), and over the space of 3 years I doubled my money which is helping with our wedding and buying a new house

One other thing to mention is to check the small print to see what happens if you get made redundant or if the company is bought over.

My company where aquired and as a result we got our shares all paid out without any penalties

And the new company are starting one this month and already ive decided to pump in the max at £250 over 5 years.

Madness not to imho

swiss69

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

As far as I am aware, this is not the case with sharesave schemes. The contribution is made from net income not gross. Partnership shares receive tax relief on contributions.

Try and save the maximum if you can as it can be very lucrative. I have recently made 30k profit on a 15k saving!

Banking shares are likely to recover by the end of 5 years.

The only thing I would say is be sure that you will stay for the time period. I went for 5 year option and after 3 years wanted to move jobs. The lure of the money made me stay. it is a good way of the banks retaining staff. if in doubt opt for the 3 year one!

Tinkerbelle1

Hi Everyone

I work for RBS and this will be my 1st sharesave, can someone explain exactly how this works, I understand that I can't lose any of the money I've put in, but it's the shares part I don't fully understand. I think the shares at the moment are quite low.

We have set up a savings plan to start in about a months time from now to get a decent deposit to buy our 1st house, would it be worth while re-arranging that to take into account the sharesave and save quite a bit over 5 yrs through sharesave to try and make more than we would with a savings account?

Any help greatly appreciated

swiss69

Tinkerbelle.

As an example.

If the share option price for RBS is say £2.00, you save up to £250 per month for 3 or 5 years. If you assume 5 years for this example and save say £100 per month then after 5 years you will have saved £6000. You will also receive interest on this lets say £600. After 5 years you therefore have £6600 to invest in the shares at £2.00

If they are say £4.00 on this day then you will buy 3300 shares and you could sell them on the same day for £13200 - a profit on your savings of £7200

Obviosuly you could make much more than this or less but you will never get back less than the £6600 whatever happens.

If you are not planning to buy a house for more than 5 years and think you will work for them for that time I would say put as much in as you can!

I recently made 30k profit in bank shares by saving the maximum £250 pm

downs523

my partner has the oppourtunity to do this with sainsburys, so i take it its worth it? could i do this being her partner?

Tinkerbelle1

Thanks for that swiss69, sounds like it could be very very good then

Im thinking of possibly doing £150 for 5 yrs, I think the full amount is a bit much if we end up buying a house before then, so hopefully that will be enough.

Has anyone else made more from doing this than regular savings?

Tinkerbelle1

downs523 wrote: »

my partner has the oppourtunity to do this with sainsburys, so i take it its worth it? could i do this being her partner?

Hey

I don't think you can, I think you have to be the employee.

downs523

Tinkerbelle1 wrote: »

Hey

I don't think you can, I think you have to be the employee.

thanks for the reply.

Tinkerbelle1

You should still look into it, Im new to this and it maybe different with some companies

downs523

yeah ok thanks, i will do.