HBOS sharesave scheme

rookie07

I currently work for HBOS and joined the sharesave scheme putting away £250 per month for 3 years with the option to buy the shares for £7.92 on completion. I now have £3500 in the sharesave account with just under 2 years to go before i can sell the shares. With all the credit crunch talk and the share price close to £6 is it worth keeping this going? Or should i pull out and stick the money saved already in an Icesave isa and start up a regular saver with them for the £250 i would've been putting away? Any thoughts would be appreciated

Liz_the_Whizz

Hi rookie

My DH works for HBOS, so we have two Sharesave schemes running at present. That way, we hope to have a better chance of hitting a good point in the share price cycle to buy low and sell high.

Share price is dismal just now but who knows in 2 years? A lot of people think financials will start to claw their way back up as the bad news has already been factored into the share price, and when the shares look cheap enough, investors will come back in. After all, it's not Northern Wreck;) .

And if the share price isn't right when you get the chance to buy, then just take the savings plus the tax-free bonus as cash.

I rate it a definite "hold"

Hugeass304

You get the opportunity to start one of these each year but your maxed out at £250 already. There's nothing to stop you cancelling the one you have now and starting a new one this year when the otion price should be 20% lower than the present price. I know you'll be a longer getting any benefit but you will end up with a lot more shares

KAB_3

I'm having the similar thoughts. I'm maxed out with my contributions split over the last 3 HBOS schemes. The next scheme, although still a few months away, would appear to offer a far better opportunity. So I'm contemplating closing the last couple of schemes in readiness and putting the released funds in HiSave or a fixed rate account.

Does anyone have any AER% figures for sticking with the schemes and taking the interest/bonus instead?

rookie07

Thanks whizz sounds like good advice. Thing is im a student and planning on doing a graduate scheme when i leave uni, but probably not with HBOS, so dont really have the option to cancel now and start a new one up in a few months. That would seem like the best idea though for anyone that is planning to stay with the company for another 3 years.

Not sure about the AER cant think of ever having been told about this. Must be someone we can fire off an email to about it i'll see next time im in.

http://www.hbosplc.com/media/pressreleases/articles/hbos/2007-01-05-HBOSannoun.asp?section=hbos

Had a read of that didn't know you only got up to 6 months to decide whether or not you wanted to buy shares with the money. I wonder if i leave the company on them maturing if i'd have to make my mind up straight away or would i still get the 6 months?

anna42hmr

rookie07 wrote: »

. I wonder if i leave the company on them maturing if i'd have to make my mind up straight away or would i still get the 6 months?

i dont know about hbos, but rbs allow 6 months to decide once you have left if they are mature, so hbos may well do so too.

Leeds_Fella

Hi Fellow Colleagues,I too am a HBOS colleague and have been investing £175 per month and have ~ 4K saved up. I too bought into the scheme when shares were £8+My question is that ca you opt out of sharesave at anytime and get your money back (with hopefully some interest) or are you tied in.?

ptee

You can cancel it anytime you like either online or telephone. You get all the money you have invested to date back and you do get a bit of interest but not loads.

Ptee

McSaver

Cancel it and join the next sharesave scheme which is almost certainly gonna get you a much lower option price for allowing larger potential returns.

rookie07

KAB wrote: »

Does anyone have any AER% figures for sticking with the schemes and taking the interest/bonus instead?

(1) For the 3 year option the tax-free bonus consists of 2.4 monthly payments. This represents an AER*of 4.23% per year.

(1) For the 5 year option the tax-free bonus added at the end of the savings term consists of 7.2 monthly payments. Should you take the option to buy the Company shares, this represents an AER*of 4.48% per year.

(2) If you decide to leave your savings for a further two years, the additional bonus consists of monthly payments, making a total of 13.3 monthly payments in all. This represents an AER* of 4.46% per year.

If you do that ^ though you cant buy shares with it.

(1) For the 7 year option the tax-free bonus added at the end of the savings term consists of 7.2 monthly payments.

(2) The additional bonus consists of 6.1 monthly payments, making a total of 13.3 monthly payments in all. This represents an AER* of 4.46% per year.