Fedgroup’s Tax-Free Savings offers a nominal rate of 4.25% per year.
How can Tax-Free Savings benefit my overall investment portfolio?
Tax-Free Savings was introduced as an additional way to help South Africans save and access higher returns from longer-term commitments. In addition, you can rest assured knowing your investment is free from tax, monthly fees or volatile markets. Currently, you can invest up to R36 000 per year towards a lifetime total of R500 000 in Tax-Free Savings and you have the choice between investing a lump sum amount or monthly contributions. Any growth you earn on this investment will not be subject to capital gains tax when you withdraw it.
Interest income above the threshold attracts tax at your marginal rate, so by making use of the Fedgroup Tax-Free Savings, you are effectively maximising your tax benefit.
Important to remember!
You can have more than one
tax-free investment with different providers, but the annual investment total across all your different investments cannot be more than the current limit of R36 000 per year or the lifetime total of R500 000.
If it is exceeded, there will be a tax penalty.
Fedgroup’s Tax-Free Savings specialist
Sheldon Friedericksen joined Fedgroup in 2014 as the Group Financial Manager. Following the group’s restructure in 2015, Sheldon was named Chief Financial Officer. He is responsible for the accounting and finance of Fedgroup as well as the various subsidiaries and has taken over the legal risk team. Other teams reporting to Sheldon include company secretarial, the risk mitigation team and client accounts.