In this episode we explain how your money is taxed in a bank savings or a money market account.
The amount you can hold in a bank savings, or a money market account without paying tax will depend on:
1.Your interest exemption bracket.( Under 65 years of age is R23 800 over 65 years of age is R34 500).
2.The interest you earn.
To calculate the the value of the investment until you pay tax, please apply the formula below.
Interest exemption / funds interest rate = Maximum amount before you will start paying tax.
e.g., R23 800 / 6,45% = R368 992.
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