I have a tax free call account with Standard Bank. I would like to know whether it is possible for me to request that Standard Bank transfers the money that is in the call account to a suspense account at ABSA Bank, from where it will be immediately transferred into a tax free fixed deposit account at ABSA Bank? Will my investment then still be tax free at ABSA Bank? Would I have to cancel the call account at Standard Bank, to ensure that the fixed deposit account at ABSA Bank is tax free?
If you invest into a tax free account, regardless of where the funds come from, it will still be tax free. You can have more than one account open at a time. You must make sure though that you do not contribute more than R33 000 to one or more accounts in total for any tax year.
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