www.iva.co.uk

My company has an annual Save as you Earn Share Scheme, where you are given an option price and can then save a certain amount of your wages each month for 3 years and then you can either keep the cash you've saved plus a tax free bonus, or convert them to shares at the option price and hopefully make a bit of a profit.

My question is, I would like to save £25 a month into the scheme, but I don't want to do it if I am going to be turned down by Yorkshire Building Society (who administer the scheme.) I have read the T & C and nowhere does it mention a credit check being carried out. Yorkshire BS hold the funds on behalf of my company, but my name/dob would be given to Yorkshire BS. £25 probably is not worth the hassle, but it's the whole thought of putting a bit away each month that i cannot get my hands on unless it's an emergency.

I wouldn't have thought I need the OR's permission as the £25 is coming out of our "luxury" money [:D]

Any advice from the experts?

I think Yorkshire Bank are ok. There is at least one poster on here who has opened a bank account with them whilst in an IVA and they weren't credit checked.

If it's something your company is doing, then personally, I think you will be fine.

Hi Wen

My company also operates SAYE's, and I am not aware that a credit check would come into it, you are depositing money with them directly from your salary if it works the same way as my companys, so I am sure there wont be a problem. Its a good time to buy into any SAYE at the moment with share prices so depressed, together with the discount you get as an employee its a great opportunity.

Yes it comes out of my salary and although the first payment is due in January, and I am discharged in February, I can defer payments by up to 6 months, I was just worried that YBS might see the bankruptcy on a credit check and tell my employer - not that that would matter, but rather they didn't know!

I'd check with your IP if you are allowed to do this first. Our company is doing one at the moment and I'm sure in the T&C's it says that if you are BR on in an arrangement with creditors your not eligible to apply. Might be worth looking at the small print.

From memory, Wen is bankrupt so he is free to save from his share of any disposable income if subject to an income payments arrangement or order - but the point about specific terms and conditions may well be relevant to check out first.

I'll double check the T & C's again, the only thing I remember at being bankrupt is if you 'become' bankrupt then obviously the funds currently saved will be redeemed and given to the OR.

As you are saving and not borrowing I doubt there is any checks for credit worthiness.

However, your £25 per month savings might go further in the long run with a Regular savers Bank savings account even though interest rate is lower these days.

Unfortunately kalla, being bankrupt stops you from opening even a savings (just incase i'm stashing millions away from the OR I suppose!!) So yes they do credit checks on savings! Crazy as it sounds!!

I remember Skippy needing to jump through hoops with regards to a Sainsbury's savings account.

If the shares return to the level they were at even 2 months ago, then the interest rate on my return would be 51% !!! And if i take the money and tax free bonus this adds up to an interest rate of 4.3% which isn't bad, especially given the current rates.

Don't bet on not being credit checked for a savings account. I've been turned down a couple of times as I've failed a credit check. That was for an account in my name though, nothing linked to a company.

To be honest I'd go with the SAYE scheme rather than a bank account - it's harder to get at the money so you're less likely to withdraw it!

Speak of the devil and she will appear ! LOL

I opened a yorkshire building society savings account 1 year into my IVA, had no problems at all. I have my mortgage with YBS though so i don't know if that makes a differnce.

I've been called a lot of things in my time but never the devil!

I didn't get a savings account with Sainsburys in the end - I refused to pay £60 for a certificate of discharge, especially as they wanted the original!

I have managed to open savings accounts since - I've got a Cashbuilder and a Regular Savings account with Nationwide and yesterday I opened an esavings account with Northern Rock without any problems.

Not that there's much in any of them at the moment, but I have plans!

lol sorry Skippy. I quite agree, the interest wouldn't cover the £60 at the moment either! I have a second cashminder account at the moment that i keep money for car tax/mot etc, and use it to save a few pennies, and hopefully in 12 months or so I may try opening a savings account with the Co-op again.

Don't worry, the devil is probably a compliment compared to some of the things I've been called in previous jobs!

I've got a second Cashminder that I use for housekeeping. I used to use my Nationwide Flexaccount but it was a pain not having a debit card. My grand plan is to put car money in the NR account, some housekeeping in the Regular Saver in case we need anything and my clothing / haircut allowance in the Cashbuilder.

Whether this happens is anybody's guess!