Is there tax on interest earned on money in savings accounts?
By Alicia Human · Updated
I think my tax return for 2023 was incorrect.
The amount in my ABSA back account pulled through and according to me, I am not supposed to pay tax on interest earned on money in my savings bank account.
If I am correct, what are the next steps to correct this?
The amount in my ABSA back account pulled through and according to me, I am not supposed to pay tax on interest earned on money in my savings bank account.
If I am correct, what are the next steps to correct this?
Your standard savings account at ABSA and other local investments are all taxable if the total interest you earned for the year is more than R 23 800 (R 34 500 if you are older than 65).
There are however, some investments that won't trigger a tax liability, which are called tax-free savings accounts.
The tax-free investments may only be provided by licensed banks, long-term insurers, managers of registered collective schemes (with certain exceptions), the National Government, mutual banks or co-operative banks, the South African Postbank, administrative financial services providers and persons authorised by a licensed exchange to perform one or more securities services in terms of the exchange rules.
You are only able to invest R 36 000 into a tax-free savings account each year.
Please click here for further information on tax-free savings accounts.
There are however, some investments that won't trigger a tax liability, which are called tax-free savings accounts.
The tax-free investments may only be provided by licensed banks, long-term insurers, managers of registered collective schemes (with certain exceptions), the National Government, mutual banks or co-operative banks, the South African Postbank, administrative financial services providers and persons authorised by a licensed exchange to perform one or more securities services in terms of the exchange rules.
You are only able to invest R 36 000 into a tax-free savings account each year.
Please click here for further information on tax-free savings accounts.