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The Auto Share Invest (ASI) and Tax Free Invest functionality has moved to the new Online Banking Site. Below is everything you as an ASI and Tax Free Investment account holder need to know about the new platform.
Auto Share Invest (ASI) is a low–cost online investing platform that gives you the opportunity to buy and/or sell around 200 JSE listed Shares and ETFs on an ad-hoc and/or recurring basis.
A tax-free investment account** is an invaluable addition to any investor's portfolio. Through it, you're able to take advantage of great tax breaks and use it for your own benefit and to give your loved one a gift that keeps on giving.
(please note that should you elect funds to go into your bank account 'Withdraw money into my nominated account', this will be treated as a withdrawal from your TFIA)
All cash (accumulated from distributions, interest, left over from purchases or added to the account by UCount) held in your investment account is placed with the JSE Trustees (Pty) Ltd. and earns interest at the JSET rate, less fees. In order to enable you to harness the power of compound growth we have built a feature to allow your scheduled purchase orders to be automatically topped up with any available cash. If you have multiple orders for the same day the available cash is split in proportion with the value of the orders. This is the easiest way to automatically reinvest your investment income.
As an example, if you own 100 shares of a company and it pays a dividend of R2.50 per share, after the deduction of 20% Dividend Withholding Tax (DWT not applicable in tax free accounts), you will receive a net dividend of 100 * R2 = R200. Additionally, let’s say that you have R38 left over in your account from a past purchase, where you fell short of the required amount needed to buy one more additional share. Thirdly you have redeemed R250 in loyalty points from UCount into your account.
These amounts all attract interest for the period that they are in the account, in this case let’s say that is R5.50
These amounts are all added together:
R200 (nett dividend)
+ R38 (remaining from previous month)
+ R250 (UCount points redeemed)
+ R5.50 (Interest)
= R493.50 (total)
If you have elected to top up your next scheduled purchase order of R750 with available funds, the actual order will be for R750 + R493.50 = R1243.50.
For more information on how to use UCount points for Tax-free investing, please check out the following post: Earn UCount Points with Standard Bank
Starting on the 1st of March 2020, when you invest through ASI you will benefit from our reduced brokerage rate of just 0.15% (excluding statutory charges).
There are three different cost scenarios, namely purchasing shares (ASI), purchasing ETFs (ASI) and purchasing ETFs (Tax Free). Brokerage is charged at 0.15% of the value invested, with no minimums. The tables below compare 2019 and 2020 costs to give you an indication of the costs associated purchasing securities.
Statutory fees comprise:
The minimum is R10.19 for trades with a value up to R176,000
The maximum is R73.49 for trades with a value over R1,270,000
Example costs for ETF Purchases in ASI
*Statutory Fees Comprise:
Withdrawals are charged at R4.56 per single withdrawal to your nominated bank account.
If Early Settlement requested, it is charged additionally at 0.25% with a minimum of R39.90 (including VAT)
1. Log on to Internet Banking and select the “Apply” section
2. Click on “Browse” under “Savings and Investments”
3. The AutoShare Invest and Tax-Free Investment Tiles will be listed in the available options.
4. The “TELL ME MORE” option will provide additional information about the products.
5. Select the “GET ACCOUNT” option to apply for the product under the logged in user.
6. Confirm the details and accept the terms and conditions.
7. The Account opening process will take up to 48 business hours before your account will become accessible in the online banking platform