SUPERCHARGE YOUR SAVINGS



A tax free savings account (TFSA) lets you save up to R33 000 per year and grow your savings without paying tax on any of the growth your money earns.

Imagine the peace of mind that comes from having an investment that allows you to save for your dreams and goals, gives you access to your money at any time, and offers you payment flexibility without any penalties. Not just that, a tax free savings account in South Africa is an investment where you get your full savings return without being taxed on any of the growth you have earned.

Open a Tax Free Savings Account now and earn up to 8.48% interest on your savings until 31 December 2018 in our Maximised interest life fund.

WHAT ARE YOU SAVING FOR?


Easily move your Tax Free Savings Account to us.
Switch your savings quickly, easily and hassle-free to Old Mutual.

GETTING TO GRIPS WITH TAX FREE SAVINGS



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What are tax free investments?
A tax free investment is a simple savings solution where your money grows over the long term, without being taxed on any of that growth. It gives you flexibility on how much you want to save monthly, and the option to withdraw your money at any time. The longer you save your money, the longer you give it time to grow.
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What tax free investments are available?
Old Mutual offers a TFSA which is flexible to meet your investment goals, ranging from fixed interest to high equity funds. Based on what you can afford and what your goals are, a TFSA is an easy way to start your savings journey. It encourages you to save so that your savings can grow, empowering you to invest in other tax free investment products and grow your wealth.

Everyone’s talking about tax free savings, find out how they work.

Tax Free Savings Video

THE BENEFITS OF AN OLD MUTUAL TFSA





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Save tax free
Save up to R33 000 per year without paying tax on the growth of your money.
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Choose how you top up
You choose how you want to add to your savings: monthly, in lump sums or a combo of both. You can start from as little as R200/month, but the more you add to your savings, e.g R500/month, the faster it will grow.
when to start
Save your way
Choose how long and how often you want to add to your investment. Depending on your savings needs, Old Mutual has a range of investment funds to choose from.
when to start
Tax free growth
No limits on how much your money can grow and pay no tax on that growth.
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Access your money instantly
Withdraw at any time and pay no costs to withdraw your money. The longer you save, the longer your savings grow**.

**Investors usually stay
invested for at least 5 years.
 

SEE HOW YOUR SAVINGS COULD GROW



Example of what your tax free savings could be worth in 10 years from now:

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What you put in:

R1000 per month

(increased every year to keep up with inflation)

=

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Your savings could be worth:

R 224 086
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Which includes your tax-savings of:

R 10 729

**This projection is based on investments into the Old Mutual Balanced Fund. These amounts are not guaranteed and are for illustration purposes only.

Use our calculator to see what your savings could turn into, when you invest in a tax free savings account.

 
FREQUENTLY ASKED QUESTIONS
To help you better understand the Old Mutual Invest Tax Free Plan, we’ve listed some questions below. If there is anything else you want to know, please give our Customer Service Centre a call on 0860 50 60 70 .

How do I apply for an Old Mutual Invest Tax Free Plan?

Anyone with a South African ID can apply for themselves or their children*, directly online here. All you need is proof of identification and proof of residence. You can pay via debit order, or stop order for regular investments, and debit order or EFT/deposits for lump sums.
*The minor is the contracting party and the life covered, and the parent can be the payer. In this instance, payments come from the parent’s bank account and can be subject to donations tax. Any withdrawals made can only be paid into the bank account of the contracting party, i.e. the minor’s bank account.

Can I transfer my tax free savings to Old Mutual?

Yes, you can transfer your tax free savings to Old Mutual, read here for more information.

How do I add to my Old Mutual Invest Tax Free Plan?

You can choose to add regular or lump sum payments into your Old Mutual Invest Tax Free Plan whenever you want, for how long you want. You can start with as little as R200 per month or a lump sum of R1 000 (if you have a regular investment in place).

What is the maximum amount I can add to my Old Mutual Invest Tax Free Plan?

Government regulations limit you to investing a maximum amount of R33 000 per tax year and R500 000 over your lifetime. If you have more than one tax free savings product, the maximum limit will apply across all of your products.

Can I change the amount and due date of my regular investment?

You can increase, decrease, stop or restart your regular investments at any time. You can change your regular investment debit order date, to any date you choose. The change can only be made three or more working days before the next payment.

Will my regular investment increase every year?

You can choose to increase your regular investment with a yearly increase percentage. If you have selected a yearly increase, the increase date will be the anniversary date of the plan each year.

What happens if I add more than my annual or lifetime allowance?

The South African Revenue Services (SARS) will levy a tax of 40% on all contributions that exceed R33 000 per tax year. You should monitor your contributions to ensure all your tax free investments do not exceed the limits imposed by the government.

We will also monitor your contributions. If at any point, we identify that your investment could exceed the allowance, we will help you to reduce your contribution amount or pause regular investments until the next tax year*.

*The tax year is from the beginning of March to the end of February the following year.

Where is the money in my Tax Free Plan invested?

You choose which funds you want your money to be invested in. You can split or switch your money between different funds at no cost. You can do this by logging on to MyPortfolio or by speaking to your financial adviser.

What are the fees and charges for my Tax Free Plan?

An administration charge of 0.75% per annum of your fund value will be charged. This will be deducted at the end of every month. If you don’t have a regular investment set up, the administration charge will be a minimum of R20 per month.

Administration charges can be reduced with our Investment Maximisers.

Asset management fees are also applicable but the amount will depend on the fund(s) you choose.

What are Investment Maximisers?

Investment Maximisers can help you make the most of the growth on your investment.

  • Reduce administration charges from 0.75% per year to 0.50% per year, when you choose underlying funds managed by Old Mutual.
  • Refund of administration charges if, at the end of each tax year, you have invested at least R30 000 in that year, across your Old Mutual Invest plans. We will refund* up to half of the administration charge you paid during that tax year.

*The refund will be paid proportionately into the underlying funds in your Tax Free Plan.

What are the fees if I apply via an adviser?

All adviser fees are paid by you to your adviser. Old Mutual facilitates the payment on your behalf. You can negotiate these fees and the fees could be a combination of the following:

Fees are paid for initial financial advice given when applying for this plan, and which underlying investment funds you choose when setting up a regular investment at the start.

If you choose to receive ongoing financial advice, your adviser will provide you with ongoing advice on the product and your chosen investment funds.

There are three types of adviser fees (all including VAT), or a combination of them, that might be applicable.

  • a) Financial planning fee: Payable when a regular investment is set up and can be negotiated up to the amount of the first regular investment you pay (capped at R2 750).
  • b) As-and-when advice fee: Negotiable between 0% - 3.45% of each contribution.
  • c) Ongoing advice fee: Negotiable between 0% - 1.15% per annum (calculated as a percentage of your total investment value).

The as-and-when advice and ongoing advice fee work together in that the maximum of both cannot be paid. If one is higher, the fee for the other can be reduced accordingly.

How are advice fees paid?

Financial planning fees can be paid as a once-off amount upfront, deducted from your first regular investment, or as a monthly charge until the full financial planning fee has been paid off.

Can I change the level of advice fees?

You can change both the amount and the recipients of future advice fees at any time. Payments that have already been made cannot be reversed.

When can I withdraw from my Tax Fre Plan?

You can withdraw money/disinvest at any time* at no charge. You can also set up regular withdrawals if you want your money to be paid out regularly. The money will be paid into your account seven business days after receiving the withdrawal notice.

*The money you take out still forms part of your annual allowance, it does not get deducted.

What happens to my Tax Free Plan if I die?

When you take out a Tax Free Plan, you can nominate one or more beneficiaries on your plan. In the even of your death, the proceeds of your plan will be paid out according to the percentages you have allocated each one of them*. You can change the beneficiaries and the allocated percentages at any time.

*If no beneficiaries have been nominated, the proceeds will be paid to your estate and will be included in the calculated estate duty. The plan comes to an end at your death.

Can I cancel my Tax Free Plan?

You can request to cancel the plan within 30 days of application and approval. This is referred to as a ‘cool-off’. You will receive the total amount of investments made by you, less any market loss (if applicable).

How will I be kept informed about my Tax Free Plan?

Once your application has been processed, we will send you a contract pack detailing your plan. Thereafter, yearly statements will be sent.

You can also manage your investment information via MyPortfolio. For any assistance on applying online, contact us on 0860 66 54 63 or chat to us with Live Chat.

For questions on your investment, email us or contact us on 0860 50 60 70.

Apply now for an
Old Mutual Invest
Tax Free Plan
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