Professional Documents
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Product Rules
These product rules form part of and are deemed to be incorporated in the Terms and Conditions applicable to
Investec Cash Investments (“Terms and Conditions”). Words and expressions used in these product rules
which are not defined, shall have the meaning ascribed to them in the terms and conditions. If there is any
conflict between the terms and conditions and these product rules, these product rules apply.
Product description
An Investec Tax Free Fixed Deposit is a 12-month cash investment account, where you agree to invest an
amount, to a maximum of R36 000 for 12 months at a guaranteed, fixed interest rate. In terms of the provisions
of the Income Tax Act, 1962 interest earned is not subject to income tax, subject to the provisions of that act
and all other applicable legislation.
Definitions
General
Interest rates
• The interest rate is calculated on the account balance and is fixed for the fixed period
• The interest earned can be compounded monthly or transferred to a designated bank account
• If interest is transferred to a designated bank account, it is done so on the first business day of the month
Deposits
Withdrawals
• Funds may only be withdrawn from this account on the maturity date
• A withdrawal before the maturity date will attract penalty fees. These penalty fees are detailed below, and
may reduce your capital amount
• Withdrawals before the maturity date are permitted, but subject to a minimum withdrawal limit of R5 000
Maturity
• On or before the maturity date, you must advise Investec if you do not wish to reinvest in another Tax Free
Fixed Deposit for another fixed period
• In the event that we have not received an instruction by the maturity date, your funds will automatically be
reinvested in another Tax Free Fixed Deposit, at the prevailing market rate for another fixed period
Fees
• No monthly management or administration fees apply to the Investec Tax Free Fixed Deposit
Penalty fee
• Notwithstanding the higher penalty fee stipulated for other fixed investment products in the Terms and
Conditions, the early withdrawal of funds and/or the termination of this account will attract penalty fees in
an amount equal to a formula set out by National Treasury (set out below), subject to a minimum fee of
R300 (three hundred Rand) including VAT
• National Treasury stipulates the applicable penalty to be calculated as the capital balance of the
withdrawal multiplied, over the remaining time to maturity, by the difference of the interest rate1 applicable
to the investment period of the original fixed deposit and one which is entered into on the date of
withdrawal, with the same maturity date as the original fixed deposit
• These penalty fees will reduce your capital amount
Account closure
• You may close the account at any time with 32 business days’ written notice subject to the penalty fees set
out above
• Accrued interest will be capitalised on the maturity date and included in the amount transferred when the
closing instruction is executed
• Refer to the Terms and Conditions, available on www.investec.co.za, for further details regarding account
closure
Complaints
Should you have any complaints, contact your banker or the Global Client Support Centre on +27 11 286 9663.
Disclaimers
• Investec is entitled to amend these product rules and/or to withdraw the product at any time, in accordance
with the Terms and Conditions. All amendments are published on www.investec.co.za
• These product rules (as amended from time to time) apply to any Investec Tax Free Fixed Deposit account
you may open with Investec. It is your responsibility to ensure that you have read and understood the
product rules and any amendments to the product rules
• Please refer to www.investec.co.za for additional information on the product or to review the Terms and
Conditions
1
Interest rate in this context is defined as that of the zero coupon nominal bond curve that is published by the JSE limited, daily
Investec Specialist Bank, a division of Investec Bank Limited registration number 1969/004763/06. Investec Specialist Bank is committed
to the Code of Banking Practice as regulated by the Ombudsman for Banking Services. A registered credit provider registration number
NCRCP9.