RBS Sharesave 2011 - advice? thoughts?

opinions4u

bingobob777 wrote: »

Several of the answers on here are wrong. You can continue paying 250 in to your current 2009 scheme AND open a new one and pay in 250.

My wife currently pays in to 3.

You can pay in to as many as you like, but the overall contribtion should not exceed £250 per month.

See page 8

http://www.hmrc.gov.uk/shareschemes/employer-guidance.pdf

Total contributions made by one participant to savings schemes linked to approved SAYE share option schemes must not, in aggregate, exceed £250 per month.

So which answers are wrong?

Jegersmart

bingobob777 wrote: »

Several of the answers on here are wrong. You can continue paying 250 in to your current 2009 scheme AND open a new one and pay in 250.

My wife currently pays in to 3.

If that is the case with the OP's scheme then it is a different story.

gadgetmind

opinions4u wrote: »

You can pay in to as many as you like, but the overall contribtion should not exceed £250 per month.

Yup, that's what we were told, and it's confirmed here.

http://www.hmrc.gov.uk/shareschemes/employer-guidance.pdf

"Total contributions made by one participant to savings schemes linked to approved SAYE share option schemes must not, in aggregate, exceed £250 per month."

gadgetmind

Jegersmart wrote: »

If that is the case with the OP's scheme then it is a different story.

It can't be as these scheme need to work within rigid HMRC rules.

UoTegne

The new share price will be calculated based on an average of the price over 8,9 & 10th of August which along with the 10% discount puts it significantly lower than her current option price of 43.44

So long as cancelling the existing contract doesn't exclude us from applying for the new rate (and I can't see anything in any of the documentation suggesting it will) it seems like a no-brainer.

We'll get back 12 months of 'investment' which will made a nice dent in the credit card bill we ran up over 3 weeks in America this year!

gadgetmind

Well, they sure picked the right three days for that. Good luck!

FireBurn

The problem isn't can we cancel but is it worth the risk if the scale back

There are 300,000,000 shares available on the scheme which means if everyone that applies takes 5 years at £250 (the max amount of shares possible - the 7 year one just matures for longer) at apx £0.28 would give each person 53571 shares. That means if 5600 people do this there will be a scale back.

The scale back will reduce the maximum amount you can save, the question will be how many people will apply and how much will we be scaled back by

Also if I do cancel my previous share save at £0.38 would I be better putting it in a cash ISA or putting RBS shares in a shares ISA? I've never used either before

Cheers

Jegersmart

I have never seen a "scale back" actually implemented on these schemes but am not an expert. I think I would be willing to take the risk due to the 27%odd improvement in price. Even if you get scaled back from £250 to £150 a month you can always do something else with that £100 a month right? Also, not everyone will be cancelling and getting back in - don't assume everyone thinks like you do.

all very imho and dyor ofc

FireBurn

And what would you recommend with the cash I get back? Mortgage pay off, cash ISA, shares ISA or an investment thing like Zopa?

gadgetmind

Jegersmart wrote: »

I have never seen a "scale back" actually implemented on these schemes

I've been scaled back on two of the six of these I've started.