Money that's safe from tax

From this week you can put as much as R30000 a year in a tax-free savings account, thanks to a move by Treasury to encourage wealth creation.

An individual can now deposit R500000 over his lifetime, with returns that will never attract tax on capital gains, interest or dividends.

You can open these accounts at banks, long-term insurers or unit trusts. Investing in government bonds will also qualify.

Peter Dempsey, deputy CEO of the Association for Savings and Investment SA (Asisa), said there were no surprises in the final regulations released two weeks ago.

"Those companies wanting to launch these product options early based their planning on the draft regulations," said Dempsey.

Investec was one of these. The bank is courting cash from all walks of life, even if the people making the deposits are not earning enough to qualify as Investec clients.

FNB entered the fray last week.

Lezanne Human, CEO of FNB's savings business, said: "With almost three out of 10 of the banked population not saving at all, it is important to encourage and incentivise savings and discourage people from tapping into their retirement fund or getting into expensive debt should they need access to money in an emergency."