Investec launches tax-free fixed deposit

Colin Anthony
By Colin Anthony February 17, 2015 11:08

investec_logo_2622Press release

Investec’s Tax Free Fixed Deposit

Available from 1 March 2015, Investec Tax Free Fixed Deposit offers a 12 month fixed deposit of R30 000 at a premium fixed deposit rate with no fees and 100% capital guaranteed.

At a glance

•           12 month fixed cash investment
•           Premium fixed cash deposit rate
•           100% of investment returns exempt from tax
•           100% capital guarantee on the investment
•           Minimum investment of R30 000 per annum
•           Maximum investment of R30 000 per annum
•           Maximum lifetime contribution of R500 000

The Investec Tax Free Fixed Deposit is available to individuals only and the fixed rate is set at the date of investment. Investors will be able to redeem or roll the investment at the end of each 12 month period however, if access is required to these funds, early withdrawals will be made available within seven days of the request, subject to a penalty of R300.

Make the Investec Tax Free Fixed Deposit work for you
Here are two examples of how Investec’s Tax Free Fixed Deposit can help you save (minimum R30 000 investment at a premium fixed deposit rate of 7.31%* per annum).

First mover advantage

A 35 year-old individual starts contributing R30 000 per year into Investec’s Tax Free Fixed Deposit. By the age of 52, that individual will have reached the lifetime contribution of R500 000 as per the current legislation and accumulated R915 270.52. Assuming this is left in the tax-free savings account until retirement at 65 years of age, a total of R2 359 891 will be available, tax free.

If however, this individual starts contributing just one year later, at age 36, by the time retirement age is reached, the TFSA would have accumulated a balance of R2 205 505.85, which is R154 385 less than if contributions started only one year before.

An investment for a child

An individual invests R30 000 from the year the child is born. Before the child turns 17, the current lifetime contribution limit of R500 000 will be met. By the time that child turns 18, the effect of compound interest would mean that the investment is worth R1 047 820.

Should that child leave that money untouched, by the age of 30 it would have grown to a value of R2 359 891. Similarly, by the age of 35, it would be worth R3 309 870. Alternatively, should those funds accrue towards his or her retirement savings, it would be worth R25 195 571 (assuming retirement at age 65).

Contact us

For more information, please call Investec Cash Investments on 0860 000 TAX (0860 000 829)
or email taxfree@investec.co.za.

* The rate quoted is the annual effective rate. This is an indicative rate only and will be confirmed at the time of dealing and is subject to change. Investec Specialist Bank, a division of Investec Bank Limited registration number 1969/004763/06. Investec Specialist Bank is committed to the Code of Banking Practice as regulated by the Ombudsman for Banking Services. Copies of the Code and the Ombudsman’s details are available on request or visit www.investec.co.za. A registered credit provider registration number registration number NCRCP9

Colin Anthony
By Colin Anthony February 17, 2015 11:08
Researching Capital Markets & Financial Services

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