Wealth & Savings Accumulator
Simulate compound growth, compare major bank yields, and project your true real purchasing power after tax and inflation.
Supercharge your yields with Tax-Free Savings Accounts!
South African residents can invest up to R36,000 annually (R500,000 lifetime cap) in tax-free assets where SARS charges 0% tax on all interest, dividends, and growth forever.
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🚗 Car Finance Engine
Calculate monthly vehicle repayments, interest, bank initiation charges, and visualize compound balloon payment risks.
💸 SARS Tax & Salary Engine
Calculate net take-home salary, PAYE, medical tax credits, and retirement savings offsets for individual taxpayers.
🇺🇸 US Mortgage Engine
Compare FHA and Conventional mortgage payments side-by-side. Calculate property taxes, HOA escrow, Conventional credit-based PMI, and permanent FHA MIP.
South African Investment & Fixed Deposit FAQs
How does tax on interest work in South Africa?
All interest earned by a South African resident is subject to personal income tax at your marginal tax rate, unless it is earned in a designated Tax-Free Savings Account (TFSA). However, individual taxpayers enjoy a tax-free exemption threshold on domestic interest:
• R23,800 per year for individuals under age 65.
• R34,500 per year for individuals aged 65 and older.
Any domestic interest earned above this threshold is added directly to your taxable income and taxed accordingly.
What is a Fixed Deposit and how does it compound?
A Fixed Deposit is a financial investment where you lock a lump-sum amount of money with a financial institution for a set period (term) at a fixed guaranteed interest rate. Compounding can be chosen as monthly, quarterly, annually, or paid out entirely at maturity. When you reinvest the interest (compounding), you earn interest on top of your interest, which drastically increases the growth trajectory of your savings over time.
Is a Fixed Deposit better than a Tax-Free Savings Account (TFSA)?
They serve different strategic financial purposes. A Tax-Free Savings Account is a government incentive that shields all interest, capital gains, and dividend payouts from tax forever (subject to annual contribution limits of R36,000). A Fixed Deposit is a specific deposit structure where your rate is guaranteed, whereas TFSA accounts can hold variable interest rates, money market portfolios, or mutual equities. For long-term capital, utilizing a TFSA is mathematically superior due to compound tax savings.
How does inflation impact my investment's real rate of return?
Inflation represents the rate at which the general purchasing power of currency decreases. If your fixed deposit earns a Nominal rate of 8% per year, but the annual inflation rate is **5.5%**, your **Real Rate of Return** is only **2.5%** before tax. If tax is also deducted from the 8% return, your real purchasing power may actually decrease! It is critical to calculate your post-tax inflation-adjusted yield to ensure you are accumulating true wealth.