Enjoy the benefits of a TAX FREE Long Term Savings Account (LSA) for your hard earned savings while earning a competitive interest rate.
Under the new Withholding Tax Regime, investments and deposits made in a specially designated Long-Term Savings Account (LSA) are exempt from income tax provided that:
- The principal sum remains in the account for at least 5 years.
- The maximum amount which may be invested in any one calendar year, is $1.0 million, up to a maximum of $5.0 million over 5 years. L.S.A. account holders are permitted to withdraw up to 75% of the interest credited to the account, quarterly. At least 25% of the interest earned must be left in the account to be reinvested to the end of the 5-year period.
- Encashment prior to the 5-year period results in the interest earned being immediately subject to withholding tax.