Tax-free investments with Nedbank: Put your future in your hands

In this edition of our 2023 investment series, we unpack everything you need to know about tax-free savings:

• Why consider tax free investments?
• Using tax-free investments to save towards a goal.
• Choosing the right tax-free investment product and fund.

The end of the tax year is here and with that, the opportunity to use your current year's tax-free allowance. Already fully invested in a tax-free fund? Then get ready to use the 2023/2024 tax-free allowance from 1 March 2023. Either way, make sure you do not miss out on the compound-growth benefits of investing tax-free for you and your family.

Why consider tax-free investments? A tax-free investment (TFI) is an efficient way of saving without getting taxed on the income, interest, dividends and capital gains from the investment. TFIs are great to supplement long-term savings, including your retirement savings.

Using tax-free investments to create a legacy for your children What if you invested R3 000 per month for your child into a tax-free unit trust and left it there for a long time? A very long time. You would invest R36 000 per year (or the maximum annual amount allowed in a tax-free vehicle). The current lifetime cap is R500 000, which you would reach just before your child turns 15. By the time your child reaches retirement at 65, their investment would be worth R26 million and they would be able to withdraw R130 000 per month in today’s terms and the money would last until they were 100

Investing with Nedbank is easy

We offer a full range of savings and investment products, which can be opened in a few clicks via Online Banking or the Money app.

Simply log in, go to the investment section, select Open an investment account and choose between a wide range of options.

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Other knowledge-sharing sessions in the Nedbank 2023 Investment series

Part 1: Introducing our 2023 investment series

Part 3: Finance that lets you dream big

Part 4: Considering debt as part of your financial growth strategy

Part 5: Managing your short-term needs