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Sanlam Tax-free Investments

From R250 per month Sanlam Tax-free Investments provide you with tax-free investment returns, allowing you an effective way to save your money.

Tax-free savings accounts offer you tax-free investment returns on the money you invest. Sanlam Tax-free Investments is a tax-free savings account where you don’t pay tax on any of the interest, dividends or capital gains you earn on your investment. 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.

How it Works

How do tax-free
savings accounts work?

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Asked Questions.

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From R250 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 start your own group with friends and family or join an existing 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 million 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.

Sanlam Tax-free Investment Plans

Core Plan

Contribution Options

R250 to R2 500 pm or
R10 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

 

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