'safe' short term investment

[JayM]

I need a place to park a fair amount of money for up to a year. What would be the best (and most tax efficient) option to do this? I'm taxed at marginal rate, so straight interest-bearing instruments wouldn't be suitable.

 

[LaraC]

Can I PM you my account number?

Safest will be to use a fixed deposit account at an institution that will give you the highest return.
Depending on your age there is also a tax exemption on earnings for local interest.

 

[JayM]

Tax exemption is only 23K, which won't take long (a couple of months max) to use up.

 

[initroot]

Tax free investments coming next year.. limits does apply tho.

 

[LaraC]

I didn't realise you talked about a FAIR amount of money. Either way SARS will want their share.
I'm also keen to see what others will recommend.

 

[Shoaybd]

If you want something safe then its going to be a straight interest bearing investment. If you want something that is tax effecient then you going to have to look at something that will give you capital growth. You can't have your cake and eat it too.

 

[SauRoNZA]

Probably the Capitec fixed deposit would be your best bet for the cheapest fees.

Otherwise Investec also has one as I recall for a high interest rate but also higher cost.

 

[chrisc]

A fixed term deposit will deduct 15% withholding tax from the interest paid. That will take care of your tax liability

 

[HavocXphere]

A fixed term deposit will deduct 15% withholding tax from the interest paid. That will take care of your tax liability

huh? Never heard of this. Link to legislation/anything for this?

 

[Aquadyne]

http://www.finbondmutualbank.co.za/Savings.html