The Sanlam Tax-Free Savings Account is a TFSA with minimum contributions of R350.00 per month. The first month’s administration charge for investing in a tax-free account is R0.00. The monthly fee is steadily increased each month until it reaches R43.50.
If the tax-free savings account is self-managed, there is a monthly administration cost of R52.50. To account for inflation, the amount charged as an administrative fee will be raised from time to time. A yearly marketing and administration fee is also assessed based on the size of the fund.
A marketing and administrative fee of 1.45% of the fund’s value is charged on funds having a value of R0.01 to R1,299,999.99. A fund having a value of R1.3 million or more will be charged a marketing and administration fee of 0.20%.
There is an investment management fee that applies to the Sanlam Tax-Free Savings Account. This is for underlying asset research and selection for a certain fund. A 0.6% management fee is imposed since the Sanlam Tax-Free Savings Account is based on the Satrix LifeTime Investment fund.
Those who choose to switch from the Satrix LifeTime Investment Fund to another fund will not be charged. Those who want the ability to choose their own funds, however, will have to pay R300.00.
Now that you’re aware of the fees involved with the Sanlam Tax-Free Savings Account, you should also be aware of how it operates. Below, we go through this topic in greater depth.
To get started with the Sanlam Tax-Free Savings Account, you can call Sanlam, request a callback, or fill out an online application. After creating the account, you can begin investing cash into it. Each month, the account holder can save between R350.00 to R3000.00 per month.
Sanlam Tax-Free Savings Account contributions are capped at R36,000.00 per year. The maximum lifetime contribution is R500,000.00. If the account holder violates these terms, the account will be subject to tax penalties. FICA (Financial Intelligence Centre Act) applies to yearly deposits of R25,000.00 or monthly deposits of R2,083.00.
The Sanlam Tax-Free Savings Account accepts lump-sum payments. An account holder can make annual deposits of between R10,000.00 and R36,000.00. The Sanlam Tax-Free Savings Account requires a one-time deposit of R15,000.00.
The Satrix LifeTime Investment fund will receive the money from the tax-free savings account. Although this process is automated, one can choose which unit trust to invest in. The account holder must pay R 300.00 to be allowed to choose from a selection of unit trusts.
The Sanlam Tax-Free Savings Account is a market-friendly savings account that allows account users to make money by investing their principal capital in a fund. The account can be used to save money for anything, including retirement or a specific purpose.
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