Capitec Tax-free Savings Account review: No Fees Attached
Read this Capitec Tax-free Savings Account review and learn about this account's flexible investment terms and savings options.
Understanding Capitec Tax-free Savings Account: Tax-Free Investment Options and Flexible Investment Terms
In Capitec Tax-free Savings Account account review, we will explore its tax-free investment options, flexible investment terms, and high interest rates.
- Fees: Early withdrawal fee of R300.00
- Interest: Balance amounts from R0 to R24.999 earn 3.50%, from R25.000 to R74.999 earn 4.00%, from R75.000 to R149.999 earn 5.25%, R150.000 or more earn 6.25%.
- Benefits: Tax-free investment options, no minimum balance requirement
- Investment Options: Fixed-term investment plan and Flexible investment plan.
This account is also ideal for individuals looking to grow their savings tax-free with flexible investment options and competitive interest rates. Feel like learning more about it? Just keep reading!
Capitec Tax-free Savings Account: understand how it works
The Capitec Tax-Free Savings Account is a good option for individuals looking to invest and earn interest tax-free.
Firstly, the account requires a minimum investment of R1.00 and offers fixed interest rates for a 12-month investment period. Interest rates range from 3.50% to 8.05%, depending on the amount invested.
Also, opening the account is easy and can be done through a Capitec branch, the banking app, or internet banking.
Further, proof of identification and residential address are required. Additionally, Interest is calculated on a daily basis and paid out monthly, with the interest rate determined by the account balance.
Furthermore, the Capitec Tax-Free Savings Account offers several advantages, including various savings options.
You also have the ability to save using a transactional account, no fees, and the option to choose between a fixed-term or flexible account.
However, early withdrawals from fixed deposit accounts come with a fee. Also, some savings options require a high investment amount to earn high returns.
So the Capitec Tax-Free Savings Account is a versatile option for those looking to save for short or long-term goals.
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Significant benefits and disadvantages you may find
Now that you are familiar with this account’s details, it’s time to have a closer look at its pros and cons. Our Capitec Tax-free Savings Account review would be incomplete without it.
So have a look at the list of benefits and disadvantages below.
- Tax-free returns.
- Competitive interest rates.
- Flexible investment terms.
- Multiple savings options.
- High investment for top rates.
- Early withdrawal fees.
- Limited investment period.
- Fixed term plan only available for single deposit.
Is a good credit score required for applicants?
Capitec does not specify whether you must or not have a good credit score in order to apply for this account. We advise you to check with the institution before applying for an account.
Learn how to apply and open a Capitec Tax-free Savings Account
Looking for a tax-free savings option with competitive rates? Apply for a Capitec Tax-Free Savings Account today with the help of our application guide. Click the link below.
About the author / Danilo Pereira
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