Supermarket shares, help please.

Nickitree30

Hi there, was wondering if anybody could point me in the right direction. I work for one of the large supermarkets part time and have built up some free shares, (unsure as to how many). It occurred to me today that they won't be earning interest (I think) and that I might be better cashing them in and putting them in a savings account. Problem is I have next to no idea about share prices etc other than a vague idea that I should sell them when they are worth more. Does anybody have any suggestions as to an easy to understand library book or website that can give me some guidance and what is the best way to track the share price. Thanks in advance for any help. PS I'm a newbie at this so please be kind.

alanq

If you have shares you won't get interest but you will get dividends (if the company is doing OK) and possible growth in the value of the shares (but they may also decrease in value). Interest rates at present are very low so I don't see much incentive to switch into savings.

There are plenty of places to see the current and historic share prices. e.g do a Google search on : name-of-company share price.

Flobberchops

It's difficult to advise without knowing more details, and I think this is something you should do not just for our benefit but also for your own information.

For example, your sharesave scheme might require you to hold shares for a certain time to be free of tax. The share price might be at an all-time low meaning you should probably wait to sell. And so on. Best to track down a copy of the terms and conditions of this scheme, your workplace's HR should be able to advise.

As for share prices, assuming it's on the UK Stock Exchange it's as simple as typing LON: then the abbreviated company name into Google. For example Tesco becomes LON: TSCO. You can then see how it's been doing in the long and short term.

Nickitree30

Brilliant, thank you both. That has given me something to think about. I tried logging in to the Equiniti site but couldn't so need to wait until Monday to use the Helpline. Once I have more details I will post them here. Hadn't thought about dividends alanq so will take this into account. Flobberchops, I think most of them I have held long enough to not pay tax on. I don't currently earn enough to pay tax, does this mean I should be free of tax on any regardless? Really appreciate the guidance from you both, thank you.

Westie983

Check if you are signed into a share scheme for a certain time period, I have company shares that is a three year scheme so although I can remove and stop contributing I cant sell any till 3 years or 5 if I want them tax and NI free...

Sounds like you have free shares that you were awarded as part of an employee reward system, check that these are not also timed as some are, my free share awards were five years till I could sell them, I found them on my share portal when I signed up to the last share scheme, (I had forgotten about them as they were awarded in 2008)

You may also be able to find the term and conditions on the web, I found mine by googling company + share scheme/Free shares.

no1catman

Unless you need the cash for some reason - I would keep them as shares.
Interest rates for alternative savings are abysmal.
If you are still working for the same company, you will have yearly additions of shares - selling the more recent ones may trigger tax, and NI penalties.
You could treat it as a 'free' pension scheme.

enthusiasticsaver

I would not rush to cash them in and put them in savings accounts as rates are abysmal apart from some high interest current accounts or regular savers. You get dividends and while I would say it is risky to hold individual company shares if it is an employee perk (in lieu of bonuses?) then it may be worth hanging on to. How many shares are you talking about? Also check if you need to hang on to them for a period of time to avoid paying tax on them.

Prices can be easily found online.

AndyT678

no1catman wrote: »

Unless you need the cash for some reason - I would keep them as shares.

enthusiasticsaver wrote: »

I would not rush to cash them in

Strongly disagree with these comments. If OP came on here and said, "I have £2,000 what should I do?" the answer would not be go and buy shares in whatever company employs you.

The correct answer is, as always, you need a cash emergency fund in high interest current accounts and / or regular savers. Once you have an appropriate level of cash then consider diversified equity investments within ISA and / or pension. Unless this is already in place, sell the shares and do this.

xylophone

For which supermarket do you work and which savings scheme is it?
You might find a booklet about it on the internet or on your company's intranet which explains the terms.

gardner1

I'm guessing these are tesco shares which are SAYE and or staff bonus shares
Which are about £1.60

Nickitree30

gardner1 wrote: »

I'm guessing these are tesco shares which are SAYE and or staff bonus shares
Which are about £1.60

Exactly right. Thank you all for the advice, still haven't managed to access the online site or find my paperwork( bathroom is getting tiled and the house is in chaos) Tried phoning the helpline but need my shareholder reference (which is goodness only knows where) Will report back once I'm a bit more organised.