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Momentum tax-free savings

Earn tax-free investment returns with your Momentum Flexible Tax-Free Option.

Make your money work harder for you by investing in the Momentum Flexible Tax-free Option, a tax-free savings account that gives you investment growth without the dividend, income and capital gains tax that comes with it.

What is a tax-free savings account?

A tax-free account is a quick, easy and tax-efficient way of growing your wealth at a faster rate than any equivalent taxable investment product in South Africa.

You can use your Momentum Flexible Tax-Free Option to save towards your child’s education, your future house, to boost your retirement savings or for anything else that's important to you.

Why should I invest in a tax free investment?

Save tax-free

Your tax-free investment does not attract South African tax on dividends or interest received or capital gains tax in your investment.

Estate planning benefits

Proceeds are immediately paid to your nominated beneficiaries without any executor fees charged in your estate.

Compound interest

If you keep your investment for a long period of time, you further benefit from the compounding effect of the tax-free returns allowing for significantly higher growth potential of the capital in this investment.

Access to your money

Your savings are immediately accessible whenever you need your money with no penalties being charged.

You can also start an investment for your child using their South African identity number. The yearly and lifetime limits will be applied for each investor and any investment you make for them will not affect your limits.

Choose the best investment funds

You can choose from a range of South African market-leading collective investment funds for your investment.

Limit for your tax free savings account

In South Africa there is a yearly limit of the amount you can invest in tax-free savings accounts and an overall lifetime investment limit. The yearly limit for the 2017 to 2018 tax year is R33 000 and your lifetime limit is R500 000. It is important not to breach these limits as it will result in tax penalties. You must also be aware that if you take money from your investment, it will not reset the amounts you can invest in that year or during your life.

Start a Momentum Flexible Tax-free Option by making a once-off investment of not less than R15 000 or with a regular monthly investment of at least R1 000 every month.

We will monitor your investments in each tax year taking all your Momentum Investments into account. This is to help ensure you don’t pay the tax penalty. We unfortunately do not know if you have the same types of investments at any other provider. It is important to be aware that the limits apply to you and all tax-free savings investments you have with all providers.

Find a Momentum adviser to start saving tax free, or read more about tax free investing in the downloadable Momentum Flexible Tax-free Option brochure.

We look forward to helping you on your next steps towards financial wellness.

Speak to your financial adviser today to get more information on the best tax-free investment option for you. If you don't have a financial adviser, find a certified financial planner to discuss how Momentum can help.

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