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Skip Navigation LinksTax-Free Savings

No-one Likes Getting Less

So why do we accept it when it comes to our savings?

Thankfully you don’t have to. Because from just R300 per month, Sanlam Tax-free Investments is an 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 and the fact that you can contribute up to a maximum of R30 000 per year, with a lifetime contribution limit of R500 000.

You can invest online on our BlueStar website and this investment will be included in the regular reviews of your comprehensive financial plan. For this commission of 2.5% of any recurring payment and 1% of any one-off payments will be payable. If you select a Comprehensive plan you will also be provided with ongoing investment advice and services, including performance feedback, for which 0.57% including VAT if applicable of the fund value per year will be payable.

How it Works

How do tax-free
savings accounts work?

View FAQ

View the Frequently
Asked Questions.

Select a Plan

Compare and select
a plan.

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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 maximum 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.

What is a savings group and how does it work?

If you are part of a savings group, you will get even more value from your tax-free investment!

Savings groups are a saving incentive unique to Sanlam. The more people in the group and the more they save, the lower the administration fees for everyone in that group!

When you take out a Sanlam Tax-Free Investment, you can join a group of like-minded investors, creating a larger fund. Sanlam will calculate your administration fees based on the combined value of your group’s savings.

You can either join the BlueStar group or you can join a different group.

Impact of increased fund value

The administration charge percentage of each plan in a savings group is based on the combined value of the group’s savings. The larger the total fund value of the savings group, the lower the administration charge percentage of all the plans in the group.

For a total fund value of R1 the administration charge percentage is 1.45%. As the fund size grows the administration charge percentage reduce until it reaches 0.2% for fund values of R 1 050 000 or more.

You can determine the administration charge percentage applicable to a specific fund value by using the slider on the graph.

Keep in mind that the administration charge of your plan is subject to a rand minimum.

Frequently Asked Questions

How Tax-free Savings Accounts Work
Sanlam’s Tax-free Investment Offering
Fees and Charges
Making Payments into a Tax-free Investment
Investment Options
Savings Groups
Account Information
Withdrawals and Submitting a Claim

Sanlam Tax-free Investment Plans

Core Plan

Contribution Options

R300 to R2 500 pm or
R15 000 to R30 000 one-off

Features:

  • Tax benefit and great value for smaller payments
  • Managed investment, using Satrix index tracking fund
  • Appropriate for medium to long term investment

 

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Comprehensive Plan

Contribution Options

R500 to R2 500 pm or
R15 000 to R30 000 one-off

Features:

  • Maximise tax benefit and value
  • Leading qualifying investment funds
  • 4 free investment fund switches per year
  • Appropriate for medium to long term investment

 

Invest Online

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Get expert financial advice.

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

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