You’ve worked hard for your money and you want it to work hard for you in return.

As the cost of living rises, it gets harder to save, but the need to save is more urgent than ever. Whether it’s saving for your child’s education or saving towards your retirement, regularly setting money aside is the best way to secure your and your family’s wellbeing. What’s more, the moment you start saving is the moment you’ll also start enjoying true peace of mind, and be able to leave those sleepless nights fretting about the future far behind.

Once you’ve made the commitment to save, it’s not always easy to decide where to deposit your precious savings.

To maximise your money, you need to earn a good return in a cost and tax efficient way. Ideally, you also want some degree of flexibility so that if your circumstances change or “life happens”, you can take a short savings break or even access some of your savings.

Tax Free Savings Accounts are worth considering as they tick all these boxes.

Their benefits include:
• All growth on your savings is completely tax free.
• You can start saving with as little as R170 per month (if you sign up online to the Old Mutual Invest Tax Free Plan, for example).
• Administration charges are low.
• You can choose to invest monthly, quarterly or annually – or make a lump sum investment when it suits you.
• You can make lump sum investments from as little as R5 000 (or R1 000 if you already have an Old Mutual Invest Tax Free Plan in place).
• You can make withdrawals at any time, although the recommended minimum investment term is between 1 and 5 years.
• You can change your investment contributions without incurring penalties, although there might be a small administration fee.
• You can open these accounts for your children.

Remember that you can only invest up to a maximum of R33 000 per tax year in a Tax Free Savings Account (R500 000 maximum over a lifetime).

Choose from a number of underlying funds to suit your investment objectives. One of the funds available on the Old Mutual Invest Tax Free Plan is the Old Mutual Maximised Interest Fund.

The Old Mutual Maximum Interest Fund aims to outperform money markets and other short-term investments, while still offering lower risk. With a current rate of 8.81% net of fees, it ensures steady growth and financial peace of mind.

Note: The rate is linked to the 3 month JIBAR rate and set every calendar quarter and fixed until the end of that quarter.

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