Morrisons Share Save

b33r

Hi, the company my friend works for is doing a share save scheme.

If you go to the below link and click 'Apply Now' the details and terms etc. can be found.

http://www.ybsshareplans.co.uk/morrisons/en/home

All looks good to me and I was going to advise them to join (with whatever they can afford to commit to every month) but just wondered if someone else could have a quick look at it and point out any potential problems or if there is a better way to invest?

From what I can tell the only way you could 'lose' is if the share price is lower in 3 years as obviously you could have earned interest on the money invested in those 3 years. With the savings rates as they are at the moment though I don't imagine that would be much and might be worth the risk?

Thanks

somethingcorporate

Very little risk, in ours if we do take our money out at the end and not buy the shares we still get the tax benefits so there is only upside for these things.

Fortunately our share price is £1 higher than the option price

b33r

Thanks, yeh from what I can find about similar schemes on the Internet you usually get *something* extra even if you don't buy the shares but appears to be nothing here.

Interesting you say tax benefits? Is yours taken from your gross salary? I think this one is taken from net so no tax benefits.

I told him to basically ignore the share price for the next 3 years as it only matters what it is on the day of maturity, any rises or falls between now and then are effectively irrelevant.

opinions4u

b33r wrote: »

I told him to basically ignore the share price for the next 3 years as it only matters what it is on the day of maturity, any rises or falls between now and then are effectively irrelevant.

You could do nothing on the day of maturity, sit on it, and wait for the share price to improve.

You have 6 months from the maturity date to play this game.

gozomark

Unless I didn't spot it, the FAQ misses out answering

"If Morrisons goes bust, what happens to my money ?"

[edit - I presume are held in a segregated account]

b33r

gozomark wrote: »

Unless I didn't spot it, the FAQ misses out answering

"If Morrisons goes bust, what happens to my money ?"

[edit - I presume are held in a segregated account]

Yeh as it's all actually handled by YBS I assume it's separate but prob should be in the FAQ

b33r

opinions4u wrote: »

You could do nothing on the day of maturity, sit on it, and wait for the share price to improve.

You have 6 months from the maturity date to play this game.

Yeh good point, adds another decision of when to buy, if you do.

helptoyou

Hi share save is the perfect savings vehicle tell your friend to contribute the maximum she can afford.

Q) I’m worried I might lose my money if I join, could this happen?
No. You’ll get every penny of your savings back if you decide not to buy your shares, regardless of what happens to the
share price. Your savings can be withdrawn at anytime throughout the saving period.

Plus forget Morrisons going bust if they did you would simply get your cash savings back from the provider of the scheme as long as they are covered by the FSCS thats who holds the savings not morrisons .

Money can not be lost in the schemes they are covered by the fscs compenstation scheme as the savings are held by a financial institution in this case yorkshire building society until maturity.

http://www.employeebenefits.co.uk/fscs-confirms-protection-for-saye-scheme-deposits/7985.article

I used share save schemes for many years and wish someone had sat me down at the outset of them to say invest invest invest.

make sure she reads and understand all the FAQ'S.

Basically if the share price is above the option price at maturity take the shares and sell (take the profit) if worried about future performance or keep if happy to, note i always took the profit there and then. or if the share price is below the option price just take the cash plus any bonus.

gozomark

helptoyou wrote: »

Money can not be lost in the schemes they are covered by the fscs compenstation scheme as the savings are held by a financial institution in this case yorkshire building society until maturity.

h

as long as the person doesn't already have 85,000 saved with YBS I presume

helptoyou

as long as the person doesn't already have 85,000 saved with YBS I presume.

Spot on gozomark !!!!

evandfarnes

It seems like a good bet.