Tesco employee save as you earn.

elvis1974

Can anybody help me, I am looking a entering the Tesco Save as you earn scheme. My problem is the info they give clearly states that if i save £20 every four weeks for five years, my savings & bonus at the end of the term will be £1244,00. Then I have the option of pocketing the money or buying shares with it a a pre-determined reduced rate. How can this be saving when if I saved £20 at home over 5 years the total would be £1300,00.

barny_100

Err £20 x 12 x 5 = £1,200 Not sure where you got the £1,300 from?

jimbow25

Probably £20 x 13 x 5 = £1,300 - as there are 52 weeks (thirteen 4 week periods) in a year.

CLAPTON

are you sure it was very 4 weeks and not monthly?

ice_angel

I understood it as being 60 payments, starting Jan 2010 and ending Aug 2014, so £1200, plus as a bonus of 2.2 payments for being on the 5 year plan, £44, making a total of £1244. It's made complicated by not saving for the whole 5 years, although it doesn't mature until 5 years later (the timetable for it is on the back of the brochure)
HTH
IA

elfen

It's 4 weekly, as my dad works for Tescos and this is how he is paid..I think he's done this on the shares side, as I know he has bought them when he can

Jonbvn

I would suggest you get into TESOCO shares ASAP, which IMHO are likely provide you with an excellent return in the long run.

pbw

sharesave is a great deal. the company will offer shares at a rate lower than todays rate, in the past 20% lower than standard rate. you then save for 3 or 5 years and after the term, if the current share price is higher than what you were offered 3 or 5 years ago, then YOU BUY. if the current share price is lower than what was offered 3 or 5 years ago, you just take the lump sum with interest

happy days!

Navvie

I currently have five, 5 year SAYE schemes running with/through my employer, each for £50 per month. Here is some advice I was given by the guys in my office who have been with the company far longer than I have and have been participating in SAYE for many years.

The maximum you can SAYE is £250 per month, and the maximum term* is 5 years. £250 divide by 5 is £50. So £50 per month on consecutive schemes means that you are always 'investing' as much as your allowed.

Once one scheme has run its course, either a) take the cash and the small bonus or b) take the shares and sell immediately. Take your 'winnings' and save/invest/spend them as you see fit. Put your stake (the £3000) into another account.

Join the next scheme that comes along at £50 per month for 5 years, and set up a standing order to move the £50 from 'another' account into wherever your wages are paid... et viola! All schemes in future years are effectively free for you to participate in, and you'll have a little payout every year.

Of course if you can invest your original stake into something more rewarding than another SAYE scheme then do so. It may make more sense to clear a debt or buy 3000 lottery tickets or...!

* - we tend to ignore the 7 year bit, it makes the calculations a little harder and 5 years is already a long time to wait for the first payout... and then, when you have a payout every year - even if it is only the bonus - you get used to it.

I must admit I broke the rules last year. The offer price on the shares was extremely good - our shares had just nose dived - and I invested £100 a month into my fourth scheme. So, in the not too distant future I will have to miss a scheme.

That is how we do it at work... of course there are the stalwarts who don't have the foresight to see the possible gains. And those who go their own way investing £5 or £10 per month. But the plan above works very well if you can survive without the ever increasing £50 per month per scheme in your bank account when you're paid!

Please do not think I am earning a high wage to be able to pay £250/month into SAYE schemes, I assure you I am not! I miss every £50 that is not in my account when I get paid as much as the next man- fortunately my wife is also in full time employment so it is in effect £25 per month per scheme from each of our wages.

I started the £100/month scheme a year ago and a couple of months in I thought I had over committed myself, something needed to change or I would have to pull out of the scheme and take my money back. The result, a small lifestyle change - I stopped going to the pub every Friday and Saturday, now I only go on a Friday - and I don't miss it quite so much now.


To anyone who is employed by a company offering a SAYE scheme I would strongly advise you to get involved. It really is a case of heads you win, tails you win!

Cheers,
Mike.

(Good grief this is a long post, congratulations to anyone who managed it all!)

minidannii

I work for tesco, i am doing the £10 a month over 5 years, i did one when i was 17, am 21 now, so should end next year. My mum does £80 a month shes with tesco aswell, she keeps going mad i havent done any since, but i dont want to put too much to it, as if i move out, or i need the money, at least £10 you can't miss.

i am thinking of just doing another £10 this year, then it will only be £20 for so long.

LongTermLurker

elvis1974 wrote: »

Can anybody help me, I am looking a entering the Tesco Save as you earn scheme. My problem is the info they give clearly states that if i save £20 every four weeks for five years, my savings & bonus at the end of the term will be £1244,00. Then I have the option of pocketing the money or buying shares with it a a pre-determined reduced rate. How can this be saving when if I saved £20 at home over 5 years the total would be £1300,00.

Do you save £20 from your pre-tax salary? If so, as a basic rate tax payer each £20 would be equivalent to £16 if you had drawn it and put it in your pocket - thus 60 months would only "cost" you £960 - then you get the option of cheap shares as well??

I don't know if SAYE does come from gross salary, but other share save schemes do.