Tax-Free Investment

Tax-Free Investment

Build your future with Al Baraka’s Tax-Free Investment. The Tax-Free Investment is an opportunity for investors to gain the full benefits of their capital, plus profit earned, (which is not subjected to any tax implications). The primary requirement to apply for the Tax-Free Investment is that you must be a South African permanent resident. Any individual including children, students, professionals, business people, homemakers, pensioners and retirees, are welcome to invest. 

  • Additional investment from as little as R250
  • No Tax on profit earned
  • No Monthly fees
  • Profits will be capitalized into your Tax-Free Investment account at the beginning of every month, without affecting your contribution limit
  • Download the Al Baraka SA Banking app to view your investment statements
  • Minimum initial deposit of R1000 when opening the account.
  • Additional deposits of R250
  • Funds invested for a fixed 12 month period
  • A maximum of R36 000 contribution per tax year and a R500 000 lifetime contribution limit applies. Limits are subjected to amendments by Legislation from time to time
  • Kindly note that penalties are applicable for investments that are made which are in excess of the annual and lifetime contribution limits.
  • You will be allowed a maximum of one withdrawal per tax year with a minimum withdrawal amount of R500 and maximum withdrawal amount being the total value of your investment.
  • Kindly familiarise yourself with all terms and conditions and legal requirements pertaining to the Tax-Free Investment as noted in the regulations in terms of Section 12T of the Income Tax Act of 1962, on the requirements for Tax-Free Investment
  • All deposits and withdrawals will be subject to Al Baraka's banking fees
  • Click here to view fees applicable 01 July 2023

The Bank earns profit from its financing activities which are carried out on the basis of Murabaha, Musharaka and Ijarah finance contracts. The profit earned is shared with the investment depositors based on the Bank’s profit distribution model.

Actual profit earned for the month is used to calculate the rate of return to the depositors and can vary month to month

For the month of March 2024 the profit earned was 5.878% ( February 2024 - 5.878%)

The following documentation is required to apply:

Adults

  • South African bar-coded Identity Document/Smart ID
  • Proof of address not older than 3 months, for the verification of your residential address

Minor

  • Birth Certificate of minor or Smart ID for young adults age 16 and over
  • South African bar-coded Identity Document/Smart ID and proof of address not older than 3 months of parent or guardian, for the verification of their residential address

Click here to view all acceptable forms of proof of address required to open an account

With these on hand, you can then contact your nearest branch to apply, or complete the Contact Form on this page for our Sales Consultant to call you

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