Assupol is a company that is known for offering products that are of value at a low cost. This also applies to Assupol savings plans which can be tailor-made to suit everyone’s savings needs. The savings plans from Assupol do not discriminate as anyone can start saving with the company.
Assupol offers four savings options for different types of investors. The lowest premium on a savings account is R300.00 per month. The minimum term for savings for all savings accounts is 5 years.
When investing or saving your money with Assupol, you need to ensure that you understand how your earnings will be paid out. Different savings options offer different payouts with some offering payout at maturity, others offering a guaranteed income, and more.
Assupol Savings Account Options
There are four savings accounts available from Assupol. Savings accounts include:
- Assupol One Savings Policy,
- Assupol One Tax Free Savings Policy,
- Guaranteed return Single premium policy, and
- Guaranteed income single premium plan.
In this chapter, we will discuss all the savings accounts that are available in detail and what the benefits of each are.
Assupol One Savings Account
The Assupol One Savings Account has the most lenient minimum amount required to open an account at Assupol. Clients can open the Assupol One Savings account by simply making a deposit of R300.00. The account requires that clients make monthly premium deposits of at least R300.00.
For clients that want to make a single premium, a deposit of at least R5,000.00 is required. However, this is optional. The minimum term of investment on the Assupol One Savings Account is 5 years and there is no maximum term, therefore, clients can save their money for over 5 years.
Yearly premiums can be increased on the Assupol One Savings Account. The yearly premium increase can be up to 20% of the premium’s value. This savings account can be used as a security for loans and can be ceded.
Assupol One Tax-Free Savings policy
The Assupol One Tax-Free Savings Account is a tax-free savings account and as such it adheres to the specifications and requirements of a Tax-Free Savings Account as per SARS. The Assupol One Tax-Free Savings policy has the following implications:
- Contributions toward the account is limited to R36,000.00 per tax year,
- Any contributions exceeding the annual cap will be taxed 40%,
- Unused amounts will not be rolled over to the next tax year, and
- Lifetime contributions on this account may not exceed R500,000.00.
The account has a minimum savings option of R300.00 per month. This money should be deposited every month for at least 5 years. There is no maximum savings term on this account meaning clients can save their money for more than 5 years.
Since the contributions cap per tax year is R36,000.00, Assupol gives clients an option to save R5,000.00 per month or R36,000.00 per tax year to capitalize on the contribution limitations. These contributions have a minimum term of 5 years with no maximum term on the savings option.
The Assupol One Tax-Free Savings Account allows yearly premiums to be increased by up to 20% per tax year. Withdrawals are allowed on this account and can be done from the first year of the policy.
Capital gains tax is not applicable to this account. Other taxes that are not applicable include dividends tax. Note that this account cannot be used as security for a loan or be ceded for any reason.
Guaranteed Return Single Premium Policy
The policy requires a minimum deposit of R30,000.00. This premium payment is a single payment that will be kept in the account for the entire duration of the investment. The minimum term on the account is 5 years. Should one opt to keep their money for over 5 years they are allowed to do so, however, the term should not exceed 7 years.
Once taken, the policy cannot be paid up before the maturity date, therefore, clients need to be sure that they won’t need the capital during the cause of the investment. The good thing is that the policy can be used as a security for a loan and can be ceded therefore you can leverage this account.
The value of the savings account is guaranteed after maturity which is between 5 – 7 years.
Guaranteed Income Single Premium Plan
This savings account is for those that are looking forward to earning an income from their savings investment. However, this account requires more money to be deposited in it than all savings accounts offered by Assupol. To open the account, you need to deposit at least R1,000,000.00.
Since interest rates on savings accounts are agreed upon before making an initial deposit, one can structure a Guaranteed Income Single Premium Plan that is able to pay all their expenses. This may require more capital but the higher the amount and the savings period, the higher the interest rates will be.
The account offers a guaranteed monthly income, however, capital cannot be withdrawn at any period except at Maturity date. The minimum savings period is 5 years and the maximum period to save is 7 years.
Assupol’s savings plans may not be revolutionary but they accommodate every type of investor. Some of the plans allow account holders to leverage financially using the accounts as security.
Knowing exactly why you need a savings account will help you in choosing a savings account with Assupol. Should you have more than one savings needs, you can always have more than one savings account.