Tax relief helps clients save
After the gazetting of the new tax rates on 31 May, Standard Bank Namibia has adjusted its investment rates upwards on their fixed, call and notice deposit products.
The adjusted retail rates are effective since 01 June 2013.
The Standard Bank Manager of Liabilities, Erna Kaura said the change in the bank’s retail rates were done to make investments more attractive for customers to save their extra income more wisely.
“If a customer invests with Standard Bank we are paying them better rates on the three Fixed, Call and Notice Investment Products. The higher the balance the better the rates, and the longer the term the better the rates as well,” said Kaura.
Tax experts advised that those earn N$50,000 per year, can now save N$2700 per year or N$225 per month. Those that earn N$150,000 can now save N$11,700 per annum. In essence this means that a tax reduction allows customers to save more and maintain a positive balance in their private bank accounts.
“For your short-term savings that will cover that rainy day or unexpected expenses put your money into a 32-day notice deposit account,” recommended Kaura. “This offers you not only good returns, but also the ability to access your money quickly when you need it.”
Kaura advised bank clients that, to support their medium–term goals like buying a car or putting a deposit down on their first residential, put their money into a fixed deposit or a Bonus Plus account. “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,” she said. Long term savings, on the other hand, typically comprise a study loan or other provision for children’s education.