Money Facts

Research by Finmark Trust reveals that more than 50% of stokvel members in the mass market do not have a bank account, 94% of members are black and 57% are women. In response to this, FNB has launched its Smart Solutions Stokvel Account.
This makes banking services more accessible to unbanked South Africans, thereby encouraging them to join the formal sector and better manage their finances. Stokvels, seen as savings for a specific item, event or emergency, are part of the informal savings market that has a strong tradition of creating a much-needed alternative for encouraging savings amongst previously disadvantaged communities.

Head of product and marketing, Jeff McDonald says, “Unfortunately, and especially towards the end of the year when most stokvels are closing their books for the year, members who do not have access to bank accounts to transfer funds saved by the group for the year become soft targets for criminals.”

“By opening this account, members are not only introduced to banking but are also encouraged to adopt safer and more effective ways of handling their finances. With a stokvel account, members are assured of greater security on their account as the risk of fraudulent activities is reduced and members are equipped with financial literacy skills.

No deposit, withdrawal fees

The account has no deposit or withdrawal fees charged. In order to open the account, a R100 opening deposit and at least two signatories are required. The account remains active for a maximum of six months after all funds have been withdrawn, allowing time for the group to resume savings.

As an added security feature, customers can also register for FNB’s inContact Pro, a messaging service that alerts up to three members of the stokvel via SMS each time there is a transaction on the account, so they are always updated about the activities on their account.

The stokvel account further supports the government’s call for people to save more, particularly in the current economic climate. According to Stokvel Times, both government and the financial sector have identified the need for more vigorous money management and keeping track of credit within the stokvel saving group arena.

Nedbank’s Take

Nedbank’s NedTerm looks like the best option. It has a high interest rate for relatively low amounts, no fees and provides for group savings. In terms of giving notice and withdrawing, it requires a minimum of three signatories. All signatories will require verification (ID and proof of residence) in terms of Fica regulations. Any person can deposit money into the account.

NedTerm is a notice deposit that requires a minimum deposit of R1 000 and a minimum of R100 for additional deposits. There is no minimum withdrawal amount, but withdrawals are subject to one day’s notice. Interest rates start at 7,15% for R1 000 and 7,45% for amounts of more than R10 000.

Other Nedbank options include the Club Account, which is operated by means of a book. Withdrawals and deposits (no minimum amount) can be made at any time at the branch. Interest rates are lower on this account, starting at 2,9% for R1 000 and 5,40% for amounts between R25 000 and R39 000.

Money-24 is a money market account requiring a minimum balance of R10 000. Additional deposits can be made at the branch. A minimum of R1 000 can be deposited or withdrawn and one day’s notice is required for withdrawal of funds. The rates are better at 7,30% for amounts of more than R10 000 and 8,78% for more than R20 000.

Absa has an Absa Club account for stokvel-type investments. It requires a minimum balance of R500 and an investment of R250 a month. For balances of less than R10 000 there is an administration fee. There are lucky draws with cash prizes for accounts with balances of R10 000 or more, but interest rates are not spectacular.

Accuracy and tax compliance are number 2 on SARS’ list of priorities – right after collecting more taxes!

In 2010, SARS made major changes to the PAYE system. Now, not only are you making a submission twice a year, but you’re also required to use the right new forms and source codes. If you make one mistake (just one!) you’ll be slapped with a penalty of 10% of the PAYE you owe for the whole year! Yikes!

New mandatory information that has to be provided to SARS

You have to provide the following information on your employee certificates otherwise your certificates will fail validation. SARS is introducing two new concepts, namely, transaction year and  year of assessment.

• Transaction year

The year in which you deduct and pay employees’ tax relating to remuneration paid or payable to an employee. This includes employees’ tax on remuneration which accrued during a previous tax year. In the past, where for example, you deducted employees’ tax, say for an arbitration award, where the accrual falls in the previous year, you had to submit a revised EMP Special Issue 101 recon for the previous year together with the additional tax certificate reflecting the arbitration award. From the 2010 PAYE filing season, if that is the case you will have to file an EMP 701.

• Year of assessment

The year in which the income accrued to the employee. Reconciliations will be generated based on Year of Assessment. As noted above, where the Year of Assessment is earlier than the Transaction Year, an EMP701 will need to be completed.

• Period of reconciliation

The year and the month that concludes the relevant reconciliation period. This will become more relevant once SARS extends the period of reconciliation from annual to bi-annual in the 2011 tax year – the first reconciliation for the 2011 year of assessment will be due for submission by the end of August 2010 and the Period of Reconciliation will be indicated as 201108.

• Certificate number

You have to issue a unique number for each employee tax certificate that can never be used again. SARS has increased this field from 13 to 30 digits. The format is as follows: 10 digit PAYE reference number of employer, followed by the transaction year and then a unique identifier which may contain numeric and alpha characters. It cannot be shorter than 30 characters.

For example if certificate no 10000001 has been issued for PAYE reference number 7990799999 and year 2009, the certificate number will be: 799079999920090000000010000001.

• Employees’ addresses in a defined format

You must be sure to follow the formal address structure that is used nationally.

• Compulsory banking details

You have to provide your employees’ banking details on the new IRP5/IT3(a) certificates to SARS. According to SARS they would like to validate the bank details that taxpayers have provided on their tax returns against the IRP5/IT3(a) to ensure accurate and seamless refunds.

• Compulsory income tax reference number – see below

You will not be able to submit your IRP5/IT3(a) certificates to SARS unless you have a tax number for all your employees.

• Compulsory ID number for SA citizens and passport number in other cases

You won’t be able to submit an EMP501 without an ID/Passport number.

• Tax directives

As an employer you can now issue IRP/IT3(a) certificates containing information relating to 3 directives. So you don’t have to complete a different certificate for each directive if more than one was issued. The field for a directive number was increased from 13 to 15 digits.

Note: Employers now have the option to use only one certificate for local and foreign income. You no longer have to fill in separate certificates if employees earn both local and foreign income as the codes used will distinguish between local and foreign income

When Capitec Bank launched their R150,000 loan offering they knew it would be a hit. They had not however decided on the best way of informing consumers about their unique offering to achieve immediate response. When the brand knew they needed measurable and direct results in the weeks running up to Christmas, the most cluttered time of year, they turned to 34 for a creative solution.

Section 25D(1) of the Income Tax Act, 1962 (the Act) provides for a basic translation rule which must be used in translating any amount expressed in a foreign currency to rand for income tax purposes, for example receipts, accruals and expenditure. The section stipulates that the amount must be translated to rand by applying the applicable spot rate on the date that the amount is recognised for income tax purposes.

However, a number of sections of the Act specifically provides that certain amounts expressed in a foreign currency must be translated to rand by applying the applicable average exchange rate while section 25D(3) provides a natural person or a non-trading trust with the option of applying the average exchange rate method of translation rather than the spot rate method of translation.

The term “average exchange rate” is defined in section 1 the Act to mean the average determined by using the closing spot rates at the end of daily or monthly intervals during a year of assessment which must be consistently applied within that year of assessment.

An exchange rate is the price of one currency (for example the rand) in relation to another currency (for example the Australian dollar).

The following sections of the Act provide for the use of the applicable average exchange rate as a method of translating specific amounts expressed in a foreign currency to rand in certain circumstances:

Section of the Act

Amount to be translated

Section 6quat(4)

Foreign tax credits

Section 9D(6)

That portion of the net income of a controlled foreign company, which is included in the income of a resident participant in relation to the controlled foreign company

Section 9G

The amount to be included in gross income as a result of the disposal of a foreign equity instrument which constitutes trading stock

Section 25D(2)

The taxable income attributable to a foreign permanent establishment of a resident

Section 25D(3)

All amounts received by or accrued to, or expenditure or losses incurred by a natural person or a trust, which are denominated in a foreign currency in instances where the natural person or trust has elected to apply the average exchange rate as a method of translation

Eighth Schedule to the Act

Certain paragraphs have specific provisions regarding the use of the average exchange rate method, for example 90(2), while other paragraphs has their own translating rules, for example paragraph 43(1),(2) and (4).

The Reserve Bank publishes weighted average rates on a quarterly basis based on the foreign exchange transactions of commercial banks. These rates may be used in determining the average rates as required in the definition of average exchange rate.

Table A lists the average exchange rates of selected foreign currencies as from December 2003

Table B lists monthly average exchange rates. Table B will be of assistance to a person whose year of assessment is shorter or longer than 12 months.

Example:

Company A changes its year of assessment from December to February. A return covering a period of 14 months (1/1/2003 – 29/2/2004) will be submitted.

SARS has lodged a Five Year Compliance Drive this month on all South Africans residents working in foreign countries. Pravin Gordhan mentioned in his Budget Speech that SARS is going to target all South Africans working abroad. Since these announcements various changes has been brought about regarding the responsibilities of the South African individual, company, trust and/or cc with foreign interests.

So as a South African resident working abroad, how will the changes affect you directly and immediately? You have to be informed to be able to make informed decisions.

TWO key factors you have to comply with;

You must be registered for Income Tax in South Africa or have an existing income tax reference number
You are compelled to submit an Income Tax Return EVERY tax year to SARS in which you have to declare your ‘worldwide’ income.

The above TWO key factors apply even though:

Your earnings qualify for the section 10(1)(o) exemption (>183 days abroad of which 60 days are continuous working days at a time). Your income will still NOT be taxed in South Africa, however, you are compelled by South African Law to have an Income Tax Number, submit a return to SARS every year and declare your WORLDWIDE income.
Your income is subject to Income Tax in the foreign country
You created a Trust/CC/Company in a foreign country into which the earnings are paid. The Commissioner released Five Year Compliance Plan this month. Quote: “We are aware of your foreign accounts”.

Should you be an EMPLOYER who employs South African residents abroad, there are significant changes affection your EMP501 (Employees Tax Reconciliation) which is due at the end of the month.

DirectAxis Personal Loans are straightforward, customised loans, which gives you direct access to cash.
Choose personal loans amount from R4 000 to R50 000 in increments of R1 000. Choose the repayment term that suits your budget, from 2 to 6 years. Use the money however you like – a family holiday, renovations, account consolidation and more!

Dirext Access Fixed Personal Loan Rates
Repayments are fixed at our current interest rate for the full term of your cash loan – they never go up, no matter how much interest rates do!

Apply for a direct axis personal loan online or over the phone 7 days a week from 8am to 8pm. No face-to-face interviews or unnecessary paperwork. No security required. Cash deposited directly into your bank account.

Fast direct application, speedy processing, direct access to the money in your account within just 48 hours!

With Woolworths personal loans life is made easy during tough times. This also means you can take care of the most
relevant issues life may bring. Interest will be charged according to the National Credit Act and will never exceed the maximum allowed by the NCA. Below are a couple of features Woolworths loans can assist you with:

A revolving personal loan gives you:

a choice of 12, 24, 36, 48 or 60 month repayment periods each time you
borrow
the opportunity to re-use money that has been paid back towards the loan
the convenience of being able to access cash through our easy
interactive voice message system
the ability to withdraw a minimum loan of R1000, increasing in multiples
of R500
no penalties for settling the loan earlier than the original term of the
loan
low monthly service fees and no initiation fees
A fixed term personal loan gives you:

a choice of 12, 24, 36, 48* or 60* month repayment periods each time you
borrow
fixed repayments so you can plan and budget accordingly
an interest rate that is fixed until the loan has been paid in full
low monthly service and initiation fees
the opportunity to re-apply once your loan is settled
no penalties for settling the loan earlier than the original term of the
loan
*not available for loans under R10 000.
Once the loan application has been approved, you will receive cash into your
bank account within 48 hours.

You will receive a legal pack that consists of the hard copy of the
Pre-Agreement statement and quotation, together with the terms and conditions.

A monthly service fee will be charged. Refer to the pricing schedule.
The interest rate charged on the Revolving Personal Loan is a variable interest
rate that is linked to the Repo Rate and may change from time to time.
The interest rate charged on the Fixed Term Personal Loan is fixed for the term
of the loan.

Payment by a monthly debit order is compulsory.

Additional payments can be made at any Woolworths store, deposit into any branch
of Absa bank or Electronic Funds Transfer (EFT).
You will get a monthly statement that shows you the balance on your loan account
together with the installment that you must pay.
Contact Details
Tel: 0860 100 987
Fax: 0860 100 986

Here are the Capitec bank loans and the various options available to you right now;
Capitec Bank Personal Loans
The possibilities available to you are endless with Capitec bank. With a loan from Capitec bank you can build that extra extension to your home for your ever growing family, place a deposit on that brand new car that you’ve been dreaming about, or simply invest into the market to grow your wealth for your up and coming retirement. At Capitec bank you are able to apply for up to R100 000.00 over terms of up to forty eight months. Within minutes Capitec is able to approve your loan and the full loan amount is could be available in your bank account shortly after. Capitec bank loans are easy, convenient and offered at great interest rates that you won’t see repeated anywhere else in the highly competitive South African marketplace.

Capitec Bank easy credit

• Paperless, quick and efficient application process.
• Choose your repayment terms from 1, 3, 6, 12, 18, 24, 36 and 48 months
• Your loan amount is available instantaneously.
• Loans for up to R 100 000.
• If you deposit your monthly salary into your Capitec bank account, you will benefit from lower interest rate charges.
• All loans in the 6 – 8 month bracket qualify for free credit life insurance
• Clients that receive a salary (monthly) may qualify for 1 to 48-month loan facilities
• Clients that are paid wages (weekly) may qualify for 1 to 12-month loan facilities
• All loans are subject to the approval of Capitec Bank’s credit policy.

Choose the Capitec Multi Loan

• A loan paid on a monthly basis can be approved annually (12 months) at the branch nearest to you for all clients that receive a monthly income (salary).
• You are able to draw your funds from any cashier or Capitec Bank ATM.
• Fees and interest are only charged on cash drawn from an ATM.
• This option offers superior flexibility and puts you in control.

Apply now

Visit you the branch nearest to you and apply for your personal loan with the following documentation:
• Your green, South African, bar-coded Identification (ID) book.
• Evidence of where you reside in the form of your local Council rates and taxes account which is addressed to you, include the street address you reside at, and which is not already 3 months or older.
• You’re most recent salary slip from your employer.
• Your most recent bank statement displaying you transaction history for the past 90 days.

Capitec bank loans offer extremely competitive interest rates that will save you a bundle in the long run. You will require no explanation for you intended use of the loan funds and Capitec values your confidence in their procedures. There is a brief evaluation on your credit history prior to the loan being approved, and thereafter is send to an account of your choice within the same business day. Whatever the state of your personal financial affairs or the credit rating you have, get down to your nearest branch and enquire with the branch manager about Capitec bank loans and how they can help you.

Personal loan from RCS. Kick-start the year and turn your dreams into reality. If you can dream it, we want to help you achieve it!

What are the benefits of choosing RCS?

Get the cash in your account within 24-48 hours
Get loans from R1000 to R100000
Pay back a set monthly amount over 12 to 60 months
Fixed interest rate to help your budget!

Other fees, including initiation and service fees might be applicable and individuals need to be aware of this.  Individuals may be subject to undertake a small insurance policy which will cover your loan amount in the case of dread disease, permanent disability or death.

RCS personal loans are usually must easier to obtain and the application process is simple.  Friendly and knowledgeable customer agents will be able to assist with any queries, and whether or not the requested personal loan and repayments will suit your budget. RCS personal loans are ideal to obtain if you require funds relatively quickly.  It can therefore not be stressed enough to keep your current debt payments up to date to ensure trouble free and easy access to a RSC personal loan.

Sanlam Personal Loans of up to R100,000 could be the ideal solution. And of course, it makes perfect sense to turn to someone you already trust with your finances; someone with an established reputation and many years of experience in the financial services industry
Qualifying Criteria
Minimum monthly income of at R3, 000 (Regular Income)
Have a clean credit record
Have a South African ID and over 18

Benefits
Easy application – no personal interview or paperwork necessary.
No security required – your mortgage of property or session of policy.
Flexibility – you can use the loan in any way you wish.
Affordable loan amount – however much you can comfortably pay back, from R4000 up to R30 000.
Choice of loan period – from two up to five years.
repayments – not affected by subsequent interest rate hikes.
Peace of mind – you can insure repayment of your loan in the event of death or disability.
You get an answer back within hours, and if we approve your application, the money will be transferred to your bank account the very next working day.

For your peace of mind Sanlam offers an optional Personal Protection Plan, which settles your outstanding loan balance in the event of your death, permanent disability or certain dread diseases. It also provides limited cover in the event of temporary disability and should you be retrenched, your monthly payments will be covered for up to 6 months. This plan is optional and will not affect the outcome of your loan application.

From time to time, we all need a financial boost. When you do, it makes sense to turn to someone you already trust with your finances; someone with an established reputation and many years of experience in the financial services industry – *Sanlam Personal Loans.