In today’s guide, we will explain how FNB Tax-Free Shares Account work in South Africa.
If you are thinking of investment, FNB offers a tax-free shares account. You get to enjoy the investment profits in full as there are no taxes imposed if you have such an account.
The account is a handful if you like to invest and don’t understand the best way to invest.
The bank will invest on your behalf and pay you profits.
In this article, I’ll share details about this FNB tax-free shares account work.
The details in the article will help you understand all you need to know, ranging from the account all about, the benefits of the account, where your money is invested, and much more.
What is an FNB tax-free savings account?
The FNB tax-free account is among the investment accounts offered by the First National Bank.
On this account, it is different from other accounts because the profits earned are not taxed.
The bank has specific qualifications, and you ought to meet them before applying for the account.
Here are the main criteria to qualify for FNB Tax-Free shares account in South Africa:
- Tax-year contribution limit of R36 000
- Lifetime contribution limit of R500 000
If you open this account, you get a chance to invest your capital, and the bank will pay you dividends and interest earned that is tax-free.
Main Features Of First National Bank Tax-Free Savings Account In South Africa
For a better understanding of how FNB tax-free shares account work, here are some of the features of the Tax-free shares savings account in South Africa:
1. No tax
The account is tax-free. All the profits and interest earned to get to your account in full.
2. Bank chose the shares for you.
Even if you don’t know anything about shares, the bank will do everything for you.
The bank will choose on your behalf and invest the money.
You are granted the dividends and also the interest according to the agreement.
3. The account offers affordable investing.
The FNB tax-free is meant for everyone as you can invest a minimum of R300 each month.
Also, the account is free such that you don’t have to pay the monthly fee to impose on other investment accounts.
How Does FNB Tax-Free Account Works
It is easy to understand how an FNB tax-free account works. First of you have to open the account and then fund it to buy the shares.
After that, the bank will choose the shares on your behalf or can choose to trade or buy shares yourself.
One fascinating feature of the FNB tax-free share account is that it enables you to invest in a portfolio of companies that are publicly traded.
It means that your money’s growth potential is boosted because it’s exposed to positive stock market returns, but there’s also a chance that the markets will perform poorly, and your money will rise very little, if at all, over time.
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This simple and easy Banking and Finance Guide Was Last Updated on 9th July 2021 by thetransfercode
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