Sharesave.. am I missing something?!

geordie_ben

I'm in a sharesave with the company I work for.

I signed up last year, and have been putting money into it since last July

The new price offered this year is 33p lower than last year

I'm thinking of cancelling last years, and signing up this year instead.

I simply get my money back with no interest

To me this sounds like a no brainer, the only down side would be that I get my money back a year later..

Or am I missing something?

ajbell

Yes, you are missing something. You may not get the shares that you ask for.

geordie_ben

ajbell wrote: »

Yes, you are missing something. You may not get the shares that you ask for.

What do you mean?

Our sharesave scheme is agree a price at the start, then after 3 years you either chose to buy at the agreed price (then sell or keep), or get your money back plus interest

gadgetmind

geordie_ben wrote: »

What do you mean?

I did exactly what you're suggesting once and it worked out well. However, these schemes are often over-subscribed, so you might not be allocated as many shares as you apply for.

geordie_ben

gadgetmind wrote: »

I did exactly what you're suggesting once and it worked out well. However, these schemes are often over-subscribed, so you might not be allocated as many shares as you apply for.

We'll defs get them

markwilkinson

Can't you just start another one? I join up to ours each year and that gives me a lump sum to spend on the share option, if it's worth it, each year.

geordie_ben

I could Mark, but does it make sense since the buy price is now lower than last year?

GreenSaints

You seem to be in the same situation as me.

I'm in two share saves at work - one that ends in a month, and one that ends in 2 years. I'm taking my money out of both of them in a few months.

The one that ends in a month, I'll get whatever the share price is plus some interest. The one that ends in 2 years, I'll only get my money back, no interest. Doing this as the shares have gone down and I need the money!

Hope this helps

geordie_ben

The only reason I'm thinking of this is because the buy price is now lower. so in 3 years I'll be able to buy more shares than I can now, and if I work it right, earn interest on the money I've already put away to pay for the last year

GreenSaints

That's why I'm cancelling my one. You won't get interest on that though - just your money back.

You can buy shares again next year, providing you haven't maxed out your allowance

meer53

geordie_ben wrote: »

The only reason I'm thinking of this is because the buy price is now lower. so in 3 years I'll be able to buy more shares than I can now, and if I work it right, earn interest on the money I've already put away to pay for the last year

What most people do is have more than one sharesave running at a time. I have 2 running at the moment, one which matures this year and one which matures in 2 years. The one which matures this year will be a winner for me as i should make about £3 per share when i sell them, maybe more if the shares go up a bit further

If yours is like the one where i work (banking) the number of shares you can buy is set if you pay a fixed amount each month as you are guaranteed the buy price so the number of shares is fixed dependant on how much you pay in.

A few years ago, i made over £5 per share but can't see that happening again any time soon !

If you can afford it, i would pay into both if i were you, you probably won't get the interest rate to match what you make on selling your shares.