Share Save Scheme

[DJ123]

I have 2 share save schemes with my current company, i will be leaving them due to getting my new job. Speaking to the company the deal with the share save scheme they say i have 2 options if i leave:
1) I can withdraw what ever i have invested plus the interest
2) I can keep paying into the share save scheme until it reaches the end date and then withdraw it plus interest

One of them finishes this August, and the other in August 2014. My dilemma is whether to withdraw the funds and have the cash (minus tax of course) or keep paying into it till the end date.

[Bri w]

Not enough info to decide.

Is it a share save scheme that has fixed the share price at the start of the scheme, and has the share price risen? For example, the current share price might be £5 but the price might have been fixed at £2, meaning you can buy a £2, and sell immediately making a £3 per share profit...

If there isn't any benefit along those lines I'd take the money. Interest rates are so low at present saving in a decent scheme is difficult... maybe take the money and shove it on an ISA...

[tigersaw]

so 1: its just the money you put in plus interest less tax
What about 2: - is there a bonus for paying until the end?

[DJ123]

if i was to stay in the company until the end of the share save period, i would get the shares at a discounted rate. in leaving the company i wouldn't be able to buy the shares at the discounted rate.
Nope, no bonus for paying in until the end

If you're leaving then there's not a lot of point in continuing to pay into the scheme, since you won't be getting the shares at the end of it. You might as well take the money now.

If it's like the one my business used to have, it's a guaranteed investment in the sense that at the end, you get the choice to either withdraw your money or exercise your right to buy shares.

If you don't have any money problems and the discount price is currently in your favour, I would continue with it.

If you need the money or can't afford to carry on paying, pull out.

Originally Posted by Stenno

If it's like the one my business used to have, it's a guaranteed investment in the sense that at the end, you get the choice to either withdraw your money or exercise your right to buy shares..

But the interest rate is bound to be extremely low (especially at the moment) and since he won't be getting the shares anyway, the money would probably be better off in an ISA.

Originally Posted by wyrdness

But the interest rate is bound to be extremely low (especially at the moment) and since he won't be getting the shares anyway, the money would probably be better off in an ISA.

Ah I didn't quite read his last comment right. In that case check what the interest rate for the term is. Might be worth going for the ISA option mentioned. That or buy a bike

[Balky001]

Is it tax free i.e. if you withdraw do you have to pay income tax on your contributions. If so then keep it in there. My company share scheme has to be held 5 years otherwise I have to pay 40% income tax and lose the matched shares my company gives me. I know you're not getting shares but if its tax efficient it will be worth more than interest anyway

well mine were utter pants utter pants ! the bank needed as many people to sign up as possible and i did ... 3 years later nothing in fact they are down 50p !! gits

pulled out so i have all my money instead of the bank having it

someone special i wanna spend it all on