Investec

Priapus said:
I was actually wondering this today, if I could open more than one PS account. Thanks.


This is exactly why I want to open more than one. So each account has a purpose. House maintenance being one of them!

But for longer term goals; arguably a 32 day notice account is better.

The wife and I plan to go to the UK for Christmas next year, and want a decent holiday. So I’ll probably open a 32 day notice account for that; which has a higher interest rate.

But Investec want 100k to open one of these account if you’re an existing client. So I might just use a PS account for it too.



I used to do this. But now, any extra money I put into the bond I do not touch. I consider it “gone” - the goal here is to have the house paid off in 10 years. It’s easier to achieve this if I don’t keep drawing money out of it. So I’ve decided to stop treating it like an flexi bond and just put extra money there each month.l and forget about it.
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Ideally you would use your bond for that. Its interest rate should be better and you have no tax issues like when earning interest in a savings account.

Just mentally ring fence the money.
 
Pegasus said:
Ideally you would use your bond for that. Its interest rate should be better and you have no tax issues like when earning interest in a savings account.

Just mentally ring fence the money.
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Indeed - this is always the best approach in my opinion.

Or ring fence in excel otherwise you just using "debt" to fund "savings"
 
GMAN03 said:
I like the fact that you can open 5 Prime Saver accounts, so I do that for various allocated funds that I use to save for different things at a decent interest rate.
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Take Tyme to the next level! I have 5 accounts. As in 5 individual accounts.
 
Snyper564 said:
Then no benefit over Investec prime saver of 7% with no limits. Also its only tax free to a point.
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Do the sums... 500 at 7% .... its way more than the allowed “tax free”. Hooking my family up with ID’s, using their account, very clever!

It snowball’s 5 times faster
 
Snyper564 said:
Indeed - this is always the best approach in my opinion.

Or ring fence in excel otherwise you just using "debt" to fund "savings"
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This used to be my approach, everything in the bond and then a spreadsheet for what the money is meant for. Trouble is every time I needed to spend it I felt too guilty so ended up not spending on things that I had saved for. I'm very good at saving, not so good at spending so the 2.5% interest penalty is worth it because at least psychologically I feel more at ease spending the money if I'm not taking it out of the bond.
 
zerocool2009 said:
Do the sums... 500 at 7% .... its way more than the allowed “tax free”. Hooking my family up with ID’s, using their account, very clever!

It snowball’s 5 times faster
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you said 7% tax free.

You are only tax free till you cross 23800...
 
Snyper564 said:
you said 7% tax free.

You are only tax free till you cross 23800...
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Lol, you are missing the point totally

Workout the tax on R600000 lets say. Divide that by 5 accounts. Only 1 account is “mine”, but I use all 5 to my benefit
 
GMAN03 said:
This used to be my approach, everything in the bond and then a spreadsheet for what the money is meant for. Trouble is every time I needed to spend it I felt too guilty so ended up not spending on things that I had saved for. I'm very good at saving, not so good at spending so the 2.5% interest penalty is worth it because at least psychologically I feel more at ease spending the money if I'm not taking it out of the bond.
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its fine to feel bad pay the bond off quicker :)
 
zerocool2009 said:
Lol, you are missing the point totally

Workout the tax on R600000 lets say. Divide that by 5 accounts. Only 1 account is “mine”, but I use all 5 to my benefit
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how are you moving money from their account to yours...

You are missing the point it shifts from interest in their hands to income in yours.

If you are essentially moving R100k into a family member and they are interest on this and then you take that interest its now income in your hands...
 
zerocool2009 said:
Its all mine, thats the beauty
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Then you have exceeded the threshold of tax free income and essentially you have under-declared your income. Thats all you did.

Your income tax return is a self assessment just because the amount is missing from an interest return does not mean you do not declare it...
 
GMAN03 said:
But you can go up to R340k in your own name before the interest would be taxable. So why 5 accounts instead of 2?
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I topup and leave, making my admin barely something.

I started now a RSA retail at 10%! (With topup option).
 
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