Tax-free Investment Account
Government introduced tax free savings accounts on 1 March 2015.
In South Africa, debt levels are increasingly taking up more of consumers’ disposable income. Studies have shown that 90 percent of South African consumers are living far beyond their means while barely saving anything. This means if they have a sickness or disability, or need to retire, they will not have enough savings to support themselves. National Treasury introduced new tax incentives to encourage savings.
In South Africa, debt levels are increasingly taking up more of consumers’ disposable income. Studies have shown that 90 percent of South African consumers are living far beyond their means while barely saving anything. This means if they have a sickness or disability, or need to retire, they will not have enough savings to support themselves. National Treasury introduced new tax incentives to encourage savings.
What are the benefits of investing in a Tax-free account?
Tax efficiency |
All proceeds of investments will be completely tax-free. No capital gains tax, no dividends tax and no income tax from interest earned… ever!
Withdrawals from your tax-free account are tax free. |
Investment choice |
You have access to a range of unit trusts designed to enable you to select one or more underlying unit trust funds to suit your risk profile.
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Low cost |
Government stipulates that products are simple to understand, adequately transparent and suitable for investors. No performance fees are allowed.
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flexibility and freedom |
You may access your money at any time without penalty. You have flexibility in that you may switch between the unit trusts at any time, stop and start contributions without any penalties.
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Transparent fees and regular reporting |
All fees are fully disclosed and we will keep you regularly informed on all aspects of your investment. You may also access your investment information online.
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Transfer of wealth |
In the event of your death, the money in your tax free account is paid to your nominated beneficiary.
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Who should consider investing in a Tax-free investment account?
You may wish to consider investing if:
you wish to save up to R33,000 per year
you wish to invest for your child's education fund
you wish to supplement your retirement savings
you wish to pay no tax on your investment
you wish to save up to R33,000 per year
you wish to invest for your child's education fund
you wish to supplement your retirement savings
you wish to pay no tax on your investment
What are the minimum investments?
The minimum investment is R500 per month. The maximum monthly contribution is R2,750. You may also stop contributing at any time without penalty.
The once-off lump sum investment is R33,000.
The once-off lump sum investment is R33,000.
What are our fees?
Our initial advice fee: 1.50% plus VAT (Allan Gray platform); 2.00% plus VAT (Discovery platform)
Annual advice fee: 1.00% plus VAT
Annual advice fee: 1.00% plus VAT
Our product providers
Allan Gray, Discovery, Glacier, Momentum, Old Mutual, Sanlam, Stanlib
Our Preferred providers
Allan Gray |
We select Allan Gray as our preferred provider for the following reasons:
1. Reputable asset management company; 2. Financially sound; 3. Efficient administration platform; 4. Clever use of technology delivers excellent user interface; 5. Excellent staff delivers excellent client service; 6. Competitive platform administration cost; 7. Reduced admin fee for using Allan Grey funds; 8. Select range of good performing unit trusts; 9. Easily creates customisable, informative investment overview; 10. May nominate beneficiaries on the investment; 11. Enables clients to submit instructions online. More info: Allan Grey Tax-free Savings Account |
Discovery Invest |
1. Reputable financial services group;
2. Financially sound; 3. Easily creates detailed investment proposal; 4. A comprehensive range of internal and external funds; 5. Clever use of technology to provide excellent client service; 6. Costs are competitive; 7. Reduced admin fee for using Discovery funds; 8. Growth within account is tax free. More info: Discovery Invest Tax-free Investment Plan |
