Save As You Earn share offer

[koolishy67]

How many interested here? Thinking to put £ 10 a week . What do you think ?

[smok3y666]

Yeah, was thinking putting full amount in tbh.

[glenfiddich]

i'm thinking of doing it i shall see what the info on sept 1st says before i commit

[teesdale]

£10 is good. Could make over £300 profit minimum at three years, or just ask for all your money back.

[BexyB9]

I was thinking of doing £25 but decided that £10 is less painful. I might request £15 though in case it's over subscribed.

[Lounge Lizard]

But what's the risk if, as so many on here suggest, the shares severely drop in value ?

[TrueBlueTerrier]

But what's the risk if, as so many on here suggest, the shares severely drop in value ?

You elect to buy at the lower price with a discount and hope that they go up so you can sell, or you sell immediately - with the discount you might make a profit anyway.

Or you elect to withdraw your savings at no loss.

All explained here

http://www.royalmailchat.co.uk/communit ... 38&t=64797" onclick="window.open(this.href);return false;

[bustedflush]

Assuming we are here in 3 years' time........

[RobertT]

But what's the risk if, as so many on here suggest, the shares severely drop in value ?

The way I see it there‘s basically 4 scenarios, let’s base it on the share price today of £4.28 and a max discount of 20% giving a buying price of £3.42. After the 3 years:

The share price is more than £3.42
1) you buy your shares and sell them straight away and make a profit, allowing for dealing costs of course.

2) you buy your shares and hold onto them for a period of time, getting dividends and hoping the price will at least remain the same or preferably increase. And then sell at a later date.

The share price is less than £3.42
1) you can just take out the cash and you don’t gain anything. Although if you factor in inflation and the fact there’s no interest payable on your savings, your money is effectively going down in value.

2) take out the cash and use it to buy more shares than the £3.42 price would buy you via a stockbroker and hope they increase in the future.

[joeyuk]

Used to have the same thing when i worked at asda. They were in walmart shares though so you could count on them being at the same level or higher, not sure about RM as its new so can't count on much. One bloke at Asda who put in £250 a month for 3 years made a killing as the shares rose 40% in the three years he was in, add that to the 20% discount he got he nearly doubled his money.

Got a one friend who should have cashed out this year that got shares for $45 and sold for $77. Think she is inline to make about $2500

Just spoke to my friend who i mention above. She cashed out for £15500 last month, she put in £9000 over 3 years. Made £6500 which is awesome, she said it was a struggle to give up £250 a month the last 18 months as she had a kid and took a £450 a month pay drop

[Darren Bent]

will this reduce my net pay by 10 pounds a week if I opt for 10 pounds or it will come from taxable income ?

[RobertT]

will this reduce my net pay by 10 pounds a week if I opt for 10 pounds or it will come from taxable income ?

It comes out of your net pay so there are no tax advantages (like with pension payments) as far as income tax is concerned.

[5plusbonusball]

BT recently finished one after 5 years with some big savers making £42k profit, tescos always does well , can't go wrong at £10 a week , if your skint next christmas you can withdraw your £500 you've saved and close the account or carry on saving as long as you can and hopefully make a profit at the end.
Maybe it will make up for the 25% tax we would pay when our shares mature in 3 years, letting us afford to keep them in for the 5 years and get full lot back?
Worth a punt it's only £10 a week out your pay and it's always safely put away when you need it.

[datasaint]

BT recently finished one after 5 years with some big savers making £42k profit, tescos always does well , can't go wrong at £10 a week , if your skint next christmas you can withdraw your £500 you've saved and close the account or carry on saving as long as you can and hopefully make a profit at the end.
Maybe it will make up for the 25% tax we would pay when our shares mature in 3 years, letting us afford to keep them in for the 5 years and get full lot back?
Worth a punt it's only £10 a week out your pay and it's always safely put away when you need it.

I think you can only withdraw it after 3 year term?

[RobertT]

I think you can only withdraw it after 3 year term?

You can close your SAYE account, stop saving, and get all your money back at any point during the savings term.
https://www.myroyalmail.com/saye-benefits" onclick="window.open(this.href);return false;