Monday, July 08, 2013

(NEW ERA NM) Save tax windfall to reach your goal
27 Jun 2013 - Story by Staff Reporter
Article Views (non-unique): 321

AS the general public looks forward to their slightly bigger salaries at the end of this month, many Namibians are delighted about the income tax relief that takes effect this week.

The relief will ultimately provide additional funds and increase disposable income for many households. Less tax ultimately means that salaries will be slightly more. In view of this, Standard Bank Namibia’s Head of Marketing, Thaddius Maswahu, encouraged Namibians to use this opportunity to increase their savings and put that extra money into a savings or investment account.

He added that given the fact that the bank has recently adjusted its investment rates to make it more attractive for customers to save their extra income more wisely, now is a good time to save. “Whether you are planning to buy a car next year, or want to pay school fees in a lump sum at the beginning of the year or look forward to that holiday, start saving now to help you achieve your goal tomorrow. It is a good idea to set aside money every month with a goal in mind,” said Maswahu.

Echoing similar sentiments Standard Bank Namibia’s Manager of Liabilities Erna Kaura said a good way to start saving is to open an Investment Account into which you can transfer funds every month. “For your short-term savings that will cover that rainy day or unexpected expenses, put your money into a 32-day notice deposit account,” recommends Kaura. “This offers you not only good returns, but also the ability to access your money quickly when you need it.”

Kaura said in order to support medium–term goals like buying a car or putting a deposit down on a first residential property, money can be put into a fixed deposit or a Bonus Plus account. “While the Bonus Plus Account at Standard Bank Namibia is a goal oriented savings account that requires monthly investments over a fixed period, a fixed deposit gives you a good interest rate and you have to give notice when you want to take your money out and that makes it ideal for medium-term savings,” says Kaura. Long-term savings mainly involve putting money aside for studies or investing in children’s education.


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