is it worth buying share options for Lloyds?

eskbanker

Vortigern wrote: »

Your contributions will be held in a deposit account which should have the usual FSCS protection.

MarkCarnage wrote: »

Usually the savings is held with a separate institution (Skipton BS used to specialise in running these I think), but in any event I think it is covered by FSCS as it's a savings vehicle in cash with a regulated institution.

However, it is worth checking who it's with and the T&C of it just to be on the safe side.

Difficult to know for sure either way without sight of the scheme Ts & Cs but I'd be surprised if FSCS covered this.

My assumption would be that Lloyds, as OP's employer, will be retaining salary deductions in some sort of ring-fenced corporate account, so this wouldn't be a personal deposit account as such even if it was specifically for OP's money (my guess would be that it would be a collective account for the whole scheme, or at least multiple members, anyway), and so wouldn't be eligible for FSCS coverage.

I'm just speculating here though, so happy to be proved wrong by anyone who knows the full story!

Edit: now proved wrong, as per subsequent posts below, so ignore this....

Thrugelmir

eskbanker wrote: »

Difficult to know for sure either way without sight of the scheme Ts & Cs but I'd be surprised if FSCS covered this.

SAYE schemes have been in place for several decades. Perfectly secure.

eskbanker

Thrugelmir wrote: »

SAYE schemes have been in place for several decades. Perfectly secure.

I wouldn't necessarily disagree with the sentiment but the specific question was whether they're actually covered by FSCS or not, as my reading of FSCS rules is that deposit protection applies "If you hold money with a UK-authorised bank, building society or credit union that fails".

It's not clear to me that such deposit protection includes corporate accounts used for share schemes, as well as personal accounts that are under the direct control of the individual?

Thrugelmir

eskbanker wrote: »

I wouldn't necessarily disagree with the sentiment but the specific question was whether they're actually covered by FSCS or not, as my reading of FSCS rules is that deposit protection applies "If you hold money with a UK-authorised bank, building society or credit union that fails".

It's not clear to me that such deposit protection includes corporate accounts used for share schemes, as well as personal accounts that are under the direct control of the individual?

SAYE schemes fall under FSCS protection.

eskbanker

Thrugelmir wrote: »

SAYE schemes fall under FSCS protection.

Fair enough, I couldn't find anything indicating this on the FSCS site but I now see from a wider search that there was some news coverage when this protection was introduced in 2008.

Flobberchops

To echo the majority here: absolutely take part in Sharesave, fill your boots in fact. As investments go it's one of the lowest risk ones going, and with the 20% discount the share price could stay static and you'd make a profit.


Lloyd's are almost certainly not going to go bust any time soon, their stock is cheap as chips, and has a decent dividend. Conventional wisdom would be to immediately cash in your stocks on maturity and buy some VLS80 or whatever instead - personally, I would keep the shares; half in the expectation of future growth and partially just to enjoy the dividend cheques. That's just me though, sign up and you have a few years to decide what strategy you're taking.

redpete

ANDY597 wrote: »

Check to see if you can just take your savings at the end of the 3 year period, as opposed to exercising your option to buy the discounted shares. My previous company share save scheme allowed you to do this so worth checking.

Already answered

user1168934 wrote: »

to clarify, the letter from lloyds did say that it is optional to buy at the end of the three year period. You can simply take your money at the end of the period.