Category Banking

FNB launches Tax-Free Unit Trusts on the FNB App

29 November 2022 FNB
Sizwe Nxedlana

Sizwe Nxedlana

FNB now offers its customers the option of taking out a Tax-Free Unit Trust quicker and easier on the FNB Banking App without having to fill in lengthy forms.

FNB has launched a Tax-Free Unit Trust offering on the FNB App to provide customers with more options for maximising their tax-free benefits. Customers have the option to choose from various unit trusts with contributions starting at R300 per month or R5000 once-off. The Tax-Free Unit Trust complements other tax-free solutions such as a Tax-Free Cash Deposit and Tax-Free Shares account, also available via the FNB App.

Sizwe Nxedlana, incoming CEO of FNB Private Segment says, "The expansion of our investments offering is based on our belief that anyone can invest to accomplish their goals. In keeping with this, we want to help our customers through integrated advice to better manage their money in credit, insurance, and transactional activities so they can start investing in their future. As a result, we’re pleased to offer customers an opportunity to maximise their tax-free benefits through a range of savings and investment solutions through a digital platform that they already trust to facilitate most of their financial needs. Our customers will also earn eBucks rewards points depending on their monthly or annual contribution amount into their tax-free savings product.”

Tax-Free Accounts were introduced to enable all South Africans to save and benefit from higher returns for their long-term goals. Consumers can invest a maximum of R36 000 per tax year and R500 000 over their lifetimes without paying tax on interest, dividends, or any capital gains. Consumers who effectively use tax-free investments can generate significant returns from compound interest, which means they get to earn interest on interest over the lifetime of their investment. The structure of a unit trust allows customers to invest in various asset classes through a diversified portfolio. More importantly, customers can use the FNB app to initiate a debit order or to make a lump sum investment. They can do all this with the ease and safety provided by the FNB App.

Saving through tax-free unit trusts is a good way for customers to start their investment journey. "It’s never too late to start investing for your goals. Because unit trusts invest in a variety of underlying assets and asset classes, your investment is diversified, and diversification is one of the best methods to manage risk to your investment,” says Bheki Mkhize, CEO Wealth and Investments.

"We are glad that an increasing number of our customers are using the FNB app for investing. This makes it easy for millions of customers to invest and improve their financial future, it also allows customers to better manage their investments and gives them a consolidated view of their investments in one place," Mkhize concludes.

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