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Tax-Free Savings Tax-free Investments

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Tax-free Investments

The affordable and convenient way to save for the future.

From as little as R300 per month, Sanlam Tax-free Investments provide an easy and effective way to save for your long-term goals, without having to pay tax on interest, dividends or capital gains. Other distinguishing features include:

  • The ability to withdraw money at any time
  • Contributions up to a maximum of R33 000 per year
  • Lifetime contribution limit of R500 000

To make your life even easier, you can invest online on our BlueStar website, which means your investment will be included in the regular reviews of your comprehensive financial plan. For this commission of 2.5% of any recurring payments and 1% of any one-off payments will be payable. Should you add the ability to select your own funds, you will be provided with ongoing investment advice and services, including performance feedback, for which 0.57% of the fund value per year will be payable (including VAT, if applicable).

How it Works

How do tax-free
savings accounts work?

View FAQ

View the Frequently
Asked Questions.

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From R300 per month.

How Do Tax-free Savings Accounts Work?

No tax on investment returns

The investment return earned on a tax-free savings account is not taxed. The longer you invest, the higher the investment return on your investment and the bigger the tax saving you get. Tax-free savings accounts offer different investment options to suit your objectives and risk profile.

 

Illustrative Values

Example

The example is based on a monthly payment of R2 500 for 16 years and 8 months, when the lifetime limit of R500 000 is reached. It assumes an investment in a balanced fund with a return of inflation plus 4% per year before fees, and a personal tax rate of 40%. These values are not guaranteed and are for illustrative purposes only.

Tax saving: R495 100
This is the tax saving on your investment return in a tax-free savings account.

Investment Return: R1 063 500
This is the investment return a plan would have earned if the investment return was taxed.

Payments: R500 000
These are the total payments made into a tax-free savings account.

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Speak to an accredited financial planner now and start investing in your future.

Sanlam Life Insurance is a licensed financial service provider.
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