You’re welcome 😊! I’m here if you any additional questions. Did you also watch the list of the Top 11 High Interest Savings Accounts and the 9 Fixed Deposit Savings accounts? If not, please do.
Thank you daughter, your information is very relevant to us ordinary people and comes in handy. However, l feel the principal amount was taxed already, why go after it again?
Thank you Yvonne❤ this was very informative and eye open. What happens if I use my interest income before the tax threshold and than over the year i almost reach the tax threshold but i use the amount? Or I will be charged based on the inerest i have received in a year if reach that tax on interest threshold?
Thank you Yvonne,once again, for an extremely informative video! I’d like to know more about how then I can AVOID (in all caps) paying tax on my interest earned 😃
So glad it's useful! That's part two which I have already filmed, scheduled to go up tomorrow morning. Let me know if you'd like it to go up tonight! 😃
Thanks, glad it’s useful! The answer is ‘not really’ because dividend income is taxed at 20% no exemption while interest income is taxed at between 18-45% per your income tax bracket but after the tax threshold. If you’re paying 45% on one income and an additional 20% on another type of income then wouldn’t you be paying more than 45% total tax on the amounts you have to pay tax on..? 🤷🏾♀️
Hi Yvonne❤ Happy sunday and thank you so much for this video. Loving the consistency 👌 Can you please discuss best bank accounts for children. Also it would be great to hear what you think of banking loyalty programmes and which bank do you think is best for leveraging loyalty rewards for cash
Hey hey 😃 Welcome back!!! Happy Sunday to you too! 🙌🏾 Thanks so much for watching, and for the nudge 👌🏾.. Let me make those videos for you and other people that could use my opinion on children accounts (because I had to open one for my child) and the loyalty programmes I swear by! 😉
Thanks for a great video. If a person earns more than the R23 800 in a tax year, but doesn't have any other income, what would be Sars' approach? This could be a student or any unemployment person.
Hey 👋🏾 Thanks for watching. Good question! I think using HYSAs for emergency funds that are less than the R265k I mentioned is important because you need an accessible safety net. I do not recommend saving too much money because of these high tax implications so I gave some options (in the video that just went live) to diversify your portfolio in a more tax efficient way including investing and tax-free options.
Well, in a perfect world we should not be taxed on our savings but SARS see the interest earned on your savings as additional income, and all additional income (or new income) has to be taxed. I feel your pain because we are already taxed ALOT! Welcome back! Thanks for being one of the first to comment!
@lehlohonololetsaba727 I think it will average out to be the same because businesses do not have interest income exemptions because it’s added to taxable income, plus it’s a flat rate also, whereas personal there is that 23.8k exemption before it’s added to taxable income. So if we have 500k in a business savings at say 10%, tax for 1st year would be 10k which is 20% of 50k interest income. Which would be more or less the same as in the video for personal interest income But interest is deductible under the income tax act which opens up another longer conversation😅all down to financial planning I think.
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Wow, thank you! 🤩
I learnt this the hard way when i was owing tax man already. It was not fun being taxed your savings at 45%.
Im in taxi industry n im blank when coming to savings use to have cash on me know you showing me light....thank u sesi😊😊
You’re welcome 😊! I’m here if you any additional questions.
Did you also watch the list of the Top 11 High Interest Savings Accounts and the 9 Fixed Deposit Savings accounts? If not, please do.
Thank you 😊, this was insightful!
Thank you so much it's 100% clear
Thank you daughter, your information is very relevant to us ordinary people and comes in handy. However, l feel the principal amount was taxed already, why go after it again?
Thanks for the video, it empowers us to take action to avoid unnecessary taxing.
🤗 I’m so glad it’s empowering! Thanks so much for watching!
Thank you Yvonne❤ this was very informative and eye open. What happens if I use my interest income before the tax threshold and than over the year i almost reach the tax threshold but i use the amount? Or I will be charged based on the inerest i have received in a year if reach that tax on interest threshold?
Do you have a video for investments in Uk?
Thank you Yvonne,once again, for an extremely informative video!
I’d like to know more about how then I can AVOID (in all caps) paying tax on my interest earned 😃
So glad it's useful!
That's part two which I have already filmed, scheduled to go up tomorrow morning.
Let me know if you'd like it to go up tonight! 😃
Great video. Stupid question. I earn interest income and dividend income. SARS can only tax me up to 45% right? Not more??
Thanks, glad it’s useful!
The answer is ‘not really’ because dividend income is taxed at 20% no exemption while interest income is taxed at between 18-45% per your income tax bracket but after the tax threshold. If you’re paying 45% on one income and an additional 20% on another type of income then wouldn’t you be paying more than 45% total tax on the amounts you have to pay tax on..? 🤷🏾♀️
Hi Yvonne❤ Happy sunday and thank you so much for this video. Loving the consistency 👌
Can you please discuss best bank accounts for children. Also it would be great to hear what you think of banking loyalty programmes and which bank do you think is best for leveraging loyalty rewards for cash
Hey hey 😃 Welcome back!!! Happy Sunday to you too! 🙌🏾
Thanks so much for watching, and for the nudge 👌🏾.. Let me make those videos for you and other people that could use my opinion on children accounts (because I had to open one for my child) and the loyalty programmes I swear by! 😉
Thanks for a great video. If a person earns more than the R23 800 in a tax year, but doesn't have any other income, what would be Sars' approach? This could be a student or any unemployment person.
Good question! From my research, it seem SARS will charge tax on interest income above the threshold at the minimum marginal tax rate which is 18%.
Even if the pupil or student aren't tax registered?
Thanks for the video however whats is the point of saving in a high yield account if the "a higher yield" is then exposing you tax
Hey 👋🏾 Thanks for watching.
Good question! I think using HYSAs for emergency funds that are less than the R265k I mentioned is important because you need an accessible safety net.
I do not recommend saving too much money because of these high tax implications so I gave some options (in the video that just went live) to diversify your portfolio in a more tax efficient way including investing and tax-free options.
Why does SARS even tax us on income that we save if we have already paid tax on our salary??!
Well, in a perfect world we should not be taxed on our savings but SARS see the interest earned on your savings as additional income, and all additional income (or new income) has to be taxed. I feel your pain because we are already taxed ALOT!
Welcome back! Thanks for being one of the first to comment!
So whats the most tax efficient way. To avoid tax? TFSA ?
Great question, and I have already filmed that video, scheduled to go up tomorrow morning.
Let me know if you'd like it to go up tonight!
@@YvonneFreely it must go up tonight😊
Cant we house the income into a business structure where we can get taxed around 20% as opposed to being taxed 45% on personal
Yes you can because there are High Yield Savings Accounts for Businesses in South Africa, check out the big banks for options.
@lehlohonololetsaba727 I think it will average out to be the same because businesses do not have interest income exemptions because it’s added to taxable income, plus it’s a flat rate also, whereas personal there is that 23.8k exemption before it’s added to taxable income.
So if we have 500k in a business savings at say 10%, tax for 1st year would be 10k which is 20% of 50k interest income. Which would be more or less the same as in the video for personal interest income
But interest is deductible under the income tax act which opens up another longer conversation😅all down to financial planning I think.
My tax rate is 45%
I opened a saving account on my wifes name and pay 18%
Smart! I wish I could do that too!
Posting a video on my 4 tax on savings solutions tomorrow. Let me know what you think! 🙌🏾