FNB pledges support to tax-free savingsby MTHULISI SIBANDA
JOHANNESBURG, (CAJ News) – FIRST National Bank (FNB) says it is enabling South Africans to benefit from the new Tax Free Savings incentive the National Treasury has launched.
In addition to a regular cash savings option that is tax free, FNB enables clients to also tap into the growth potential of the stock market.
FNB Chief Executive Officer for Savings, Investments & Fiduciary, Lezanne Human, said the FNB Tax Free Savings Accounts made it quick and easy for new and existing customers to benefit from the tax break and to build a nest egg for emergencies.
“FNB supports this initiative by the government to give South Africans this tax break on savings, and applauds its intention to make South Africans more financially secure.
“With almost three out of ten of the banked population not saving at all, it is important to encourage and incentivise South Africans to get into the habit of savings, to avoid the need to tap into their retirement fund or get into expensive debt should they need access to money in an emergency,” Human said.
From 1 March, South Africans can save R30 000 a year, and R500 000 over their lifetime in the new Tax Free Savings Account.
No tax is paid on interest earned, dividends received or capital gains.
It is believed with household debt making up more than 78 percent of disposable income, South Africans are financially vulnerable and dependent on expensive debt.
The intention is to reduce South Africans’ reliance on expensive,
short-term debt if they need money in an emergency.
The Tax Free Shares Account is a longer-term exchange trade fund (ETF) investment that offers growth potential and allows customers to invest in the top 100 companies on the JSE.
Fees are based on the customer’s portfolio size.
– CAJ News
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