Standard Bank offers a lot of investment accounts, among these is a tax-free call account. This is an overview of how the Standard Bank tax-free call account works.
What is a tax-free account?
A tax-free account is basically any account you invest your money in and not pay any interest on your yield. If for example you invest R30k then earn an interest of 5% (R1 500), you won’t have to pay tax on it.
Generally speaking, you don’t have to pay any tax on any interest income if the interest received is less than R23 500 and is from a South African source. You can invest a maximum of R36k per year into a tax-free account and R500k over the course of your life.
You can use a tax-free account to invest in stocks through an ETF, you won’t have to pay tax on any interest or capital gains. Which can be very lucrative for a long-term investor.
How does the Standard Bank tax-free call account work?
This account has an opening minimum deposit of R250, which you can withdraw at anytime you want without giving a notice. You can earn an interest of up to 3.50%, here is a complete list of all the interest rates you can earn.
There are no monthly fees, you may have to pay cash deposit fees if you choose to deposit your money through an ATM. Your interest will be paid out on a monthly basis.
Conclusion
This was an overview of how the Standard Bank tax-free savings account works. Do you have any thoughts or questions? Comment below.
