SAYE - Employe Sharesave - Help!

MickyJ

Hi, guys. I have a really important question that I can't seem to find the answer to. I can currently save up to £500 per month in an SAYE offered to me by my employer. There are two contract durations on offer: one for 3 years and one for 5 years. Do I have to choose just one of them, or can I split my £500 limit between them - say, £250 in the 3 year and £250 in the five year? (I haven't saved anything in previous schemes). I applied online, and split my money between both the 3 and 5 year option, and it seems to have through ok - I just don't want them to tell me that my application is invalid further down the line and end up loosing out completely! P.S. I didn't put the full £500 quid in - I just split what I could afford between the two options).

Gadfium

Well, with mine (BT) you can have multiple SS running at the same time (I currently have 3), as long as your total contributions do not exceed the monthly maximum.

I'm only allowed £300 per month. I wish that they'd open it up to the maximum.

steelbru

Can you not just email/phone your employer's HR department, I'm sure they'll know, as opposed to random people on a website who have no idea of the T&Cs of your scheme ?

somethingcorporate

It'll be down to the scheme and how your company operate it.

You'll need to check with your company.

kingrulzuk

https://www.gov.uk/tax-employee-share-schemes/save-as-you-earn-saye

Dont you think you will be better off saving where you get good interest rates?

lardlikesdogs

kingrulzuk wrote: »

https://www.gov.uk/tax-employee-share-schemes/save-as-you-earn-saye

Dont you think you will be better off saving where you get good interest rates?

If the share price goes up then he could make a hell lot more than any savings account could offer. 50% that's what I made.

PeacefulWaters

kingrulzuk wrote: »

https://www.gov.uk/tax-employee-share-schemes/save-as-you-earn-saye

Dont you think you will be better off saving where you get good interest rates?

The share option price is usually given at a 20% discount to current market value.

Even if the share price falls you can still walk away with a bigger return, risk free, than you would have got from a decent interest paying current account. If it falls by more than 20% you get your money back.

If the share price doubles over the saving period you can turn £18,000 saved into shares valued at £45,000.

At those odds I'll happily forego a bit of interest.

Gadfium

kingrulzuk wrote: »

https://www.gov.uk/tax-employee-share-schemes/save-as-you-earn-saye

Dont you think you will be better off saving where you get good interest rates?

If you can show me where I can get returns that my Sharesaves deliver then I'll split them in half with you!

They are a no-loss situation really. Even if the shareprice end up lower than the option price, you can just take your money and a bonus at the end.

kangoora

kingrulzuk wrote: »

https://www.gov.uk/tax-employee-share-schemes/save-as-you-earn-saye

Dont you think you will be better off saving where you get good interest rates?

Recently, £14k invested over 5 years - £95k eventual return, set me up for early retirement nicely.

In the dot-com boom I put in £4k and cashed in at £22k working for another company. Got out right at the top, by luck rather than judgement though.

Obviously it's highly dependent on the offer price you get and the company performance/market conditions but the worst downside is you will lose either some interest over 5 years OR what investment gain you may have made in another investment if your company stock tanks.

I've known people who held options at £10 when the stock had dropped to £1.50 but they still got all their capital back.

On the upside, you are guaranteed to get back what you put in plus a small bonus - and if the stock booms the gains can be huge.