In our article today, we will briefly discuss the Absa tax-free products in South Africa.
Tax-free products refer to types of financial securities and goods that are not taxed.
Any Consequence of other purchases and investments, tax-free purchases do not occur.
The bank has come up with a solution that offers tax-free products to suit the investment terms and goals that you want to achieve.
We will first show you the different types of Tax-free products.
Absa Tax-Free Products
There are three types of Absa tax-free products:
- Tax-free investment account
- tax-free EFT savings account
- Tax-free fixed deposit account.
The tax-free fixed deposit account provides you with an opening deposit of R1000 with tiered interest rates whereby you don’t pay taxes on your returns and save up to R30000 per year.
A tax-free investment account gives you an opening deposit of R10000 where you don’t pay taxes on your returns and invest in unit trusts and exchange-traded funds.
A tax-free EFT savings account gives you no capital gains tax, no dividend withholding tax on dividends earned, and no tax on interests earned.
These are the types of Tax-free products in South Africa.
Benefits Of Tax-Free Products In South Africa
If disabled, you can get a disability support pension.
You may get various allowances such as career allowance and bereavement allowance.
Absa tax-free products in South Africa enable you not to pay tax on your returns.
You may invest up to R36000 per year tax and R500000 in all your lifetime.
These are the benefits of Tax-free products in South Africa.
What Are The Risks?
Withdrawal from one tax-free account and contribution to another tax-free account may attract a subsequent penalty.
A short-term investment limits you to some tax-free products since you invest for a short period.
The annual contribution limit applies to all tax-free accounts, whether you have two or more accounts.
These are the risks of Absa Tax-free products in South Africa.