Learning Centre
Why should you consider a Tax-Free Savings Account?
With a Tax-Free Savings Account there is no tax to be paid on your savings or investment which includes any interest earned, dividends received or capital gains.
Tax-Free Savings from FNB offers you:
- Choice - you can choose between either a Tax-Free Cash Deposit or a Tax-Free Shares Account, based on your saving or investment need.
- Simplicity and convenience - your account will be linked to your banking profile allowing you to view balances and make contributions.
How it works:
You are able to contribute a maximum of R30 000 per tax year, and a maximum of R500 000 during your lifetime completely tax free. These limits are governed by legislation and may change. Should you exceed these limits, you will be penalised 40% on contributions above the limits by the South African Revenue Service (SARS). It is your responsibility to monitor and ensure that you do not contribute more than the prescribed limits.
You are able to withdraw your funds from your account but note that these funds cannot be replaced. Any direct transfers between financial institutions or individuals (or estates) to another is not allowed until further notice. Funds withdrawn from a Tax-Free Savings Account and transferred into another Tax-Free Savings Account will be deemed as a contribution.
A qualifying FNB transactional account is needed to open the FNB Tax-Free Savings Account.