Discovery Health - Vitality & Team Vitality plus everything else you need to know

[amabacha]

It's 500k overall limit, 100k per account, 10 accounts. Tax free

Tax free? How do you figure?

[amabacha]

Tax free? How do you figure?

Edit: asked and answered above

[Reme Le Hane]

Interesting...

Sorry to hammer on this... I can’t find any indication on their web that these are tax free savings accounts. It simply comes across as short term savings accounts.

I did my research when I signed up many months ago, the tax certificate I got kinda sinched it.

 

Although, would not all savings accounts actually be tax free, what makes a tax free savings account different to a savings account. For investment accounts it makes sense, but why is account A limited to 33k per year and account B not limited, both pay interest 1 comes with a tax cert while the other now. I'm making money off interest on both accounts.

 

Its the only non investment account I have that comes with a tax cert.

 

Like that silly savings pocket that fnb gives you, am I meant to be declaring the like 10c in interest I make on it each year because there is like never money in it and it pays less than 1% in interest.

[Captain Fastbastard Mayhem]

TFSAs are separate accounts created solely to be non taxable. No CGT, no tax on interest or dividends They operate under different legislation, like RA's, endowments and unit trusts do. As such they are completely different to normal savings accounts and you cannot have both under one product or account. If it's a tax free account they need to make it abundantly clear. In this case it's not.

 

You should get a tax cert for all your different accounts. Savings, investment, TFSA etc.

 

Your normal savings account interest / growth would be subject to taxation if the interest income is above your normal annual allowance from SARS. TFSA is not taxable ever unless you put more than your annual allowance in. Then for every rand you put in above 33k you are taxed 40%. IE invest R1000 but you get taxed R400 at the end of the year.

Edited August 8, 2019 by Captain Fatbastard Mayhem

[Captain Fastbastard Mayhem]

Also. TFSAs aren't just fixed interest. Some are packaged as such, but you can also have a different fund like, say, the AG tax free balanced fund, depending on how and through who you invest.

[Reme Le Hane]

Also. TFSAs aren't just fixed interest. Some are packaged as such, but you can also have a different fund like, say, the AG tax free balanced fund, depending on how and through who you invest.

See, for us normal people thus is all confusing, why don't they drop silly subjects in school like history and replace it with life skills and teach us how to apply for car and home finance, how to do your taxes, what bank accounts means and when do you have to pay taxes on passive incomes like interest and investments.

[Captain Fastbastard Mayhem]

See, for us normal people thus is all confusing, why don't they drop silly subjects in school like history and replace it with life skills and teach us how to apply for car and home finance, how to do your taxes, what bank accounts means and when do you have to pay taxes on passive incomes like interest and investments.

It's why people like me exist, and why I'm so anal about making sure what I say is correct cos there are a lot of people who are needing this sort of info, and it's very easy to confuse one for another.

 

I personally don't think they're tax free accounts. I think it's a simple "savings account" with an excellent interest rate that increases with time, but the interest is included as taxable income in your hands together with all the other interest you earn from Unit Trusts, bank accounts etc etc. If you earn more than your annual interest allowance, then all the interest above that will be taxable according to how much your earnings are (it gets added to your annual income so is taxed at your marginal rate)

 

It may be that you just didn't pay tax because the interest income you earned was below the threshold.

[Captain Fastbastard Mayhem]

Btw. Happy to discuss this stuff over a coffee for anyone who is interested. Just drop me a pm. ????

[Captain Fastbastard Mayhem]

Oh. And I'll put a post up later to give a helicopter view of the differences and different options available to people.

[Steven Knoetze (sk27)]

If you don't achieve the 20 points in the week it rolls over, I'm just about to get my first one since inception. What I've started doing as doing all my slightly-over-R50 swipes with the Disco Card as R0-R49 is 0.5 point and R50-R500 is 1 point.

 

So does that mean whether you spend R51 or R499 it is still 1 point???

Checkout lady will upset when you split your months groceries into 57 seperate transactions........

[bertusras]

So does that mean whether you spend R51 or R499 it is still 1 point???

Checkout lady will upset when you split your months groceries into 57 seperate transactions........

That is how I understood it, but I didn't really study the information. It doesn't work in multiples as far as I have it. Thus, I only swipe when it's barely over R50.

 

Edit:

 

Edited August 8, 2019 by bertusras

[bertusras]

I am just shy of Gold and still stuck on Silver - 5.3% for Positive Balance, 6.3% for Savings.

 

Bumped to Gold as of today - 5.75% for Positive Balance, 6.75% for Savings, 15.75% for Borrowing.

 

Aha, and now I see that I need to move R43K to my savings account to reach Diamond.

 

@Starchboy, any bigger flight discounts on Diamond? I see I'm still on 35% on Gold.

[Starchboy]

Bumped to Gold as of today - 5.75% for Positive Balance, 6.75% for Savings, 15.75% for Borrowing.

 

Aha, and now I see that I need to move R43K to my savings account to reach Diamond.

 

@Starchboy, any bigger flight discounts on Diamond? I see I'm still on 35% on Gold.

 

No, I am still at 35%. I mailed them yesterday to ask for some literature about how this works, but haven't had a reply yet

[Frosty]

Wife just got her 5th diamond, and she said, "thanks for the continual pushing to get to 900 points a week, now I can see it was worth it". This coming from an anti-activity type of person.

5 week’s later, and wife finally received her holiday booking confirmation. Sun City, here we come.

[ChrisF]

I did my research when I signed up many months ago, the tax certificate I got kinda sinched it.

 

Although, would not all savings accounts actually be tax free, what makes a tax free savings account different to a savings account. For investment accounts it makes sense, but why is account A limited to 33k per year and account B not limited, both pay interest 1 comes with a tax cert while the other now. I'm making money off interest on both accounts.

 

Its the only non investment account I have that comes with a tax cert.

 

Like that silly savings pocket that fnb gives you, am I meant to be declaring the like 10c in interest I make on it each year because there is like never money in it and it pays less than 1% in interest.

 

Interests earned, profit from investments, etc should all be declared on your tax form.

 

And for the person looking to "save" 33k per year you can be sure he should be submitting a tax form .... each "source of income", be it salary, royalties, dividends, interest on savings, rental income etc etc all have specific tax implications .....

 

 

There is a small percentage of persons that "earn" enough from various income streams that they actively look for ways to invest money in ways that are "tax friendly" ....

 

 

Let's just say this becomes a VERY specialized field !!!  (and those in the know shall cringe at how I mixed terms in this reply..)

[Reme Le Hane]

Interests earned, profit from investments, etc should all be declared on your tax form.

 

And for the person looking to "save" 33k per year you can be sure he should be submitting a tax form .... each "source of income", be it salary, royalties, dividends, interest on savings, rental income etc etc all have specific tax implications .....

 

 

There is a small percentage of persons that "earn" enough from various income streams that they actively look for ways to invest money in ways that are "tax friendly" ....

 

 

Let's just say this becomes a VERY specialized field !!! (and those in the know shall cringe at how I mixed terms in this reply..)

Back at school I was not taught how to submit tax returns, I open the form, fill in the red blocks and submit.