Savings Calculator ☆ Stoor

The tax on your interest is the part people forget

The projection above shows the pot. What it does not show is that interest is taxable — so your real return is lower than the headline rate once you pass the annual exemption.

• R23,800 a year of interest is exempt if you are under 65;
• R34,500 a year if you are 65 or older.

Above that, interest is added to your income and taxed at your marginal rate — so a 31% taxpayer earning 8% on a deposit is really earning about 5.5% after tax on the excess. Check your bracket in the income tax calculator.

The exemption is more generous than it sounds: at around 8% interest you can hold roughly R300,000 before you owe anything. But a larger emergency fund or a fixed deposit can cross it — and that is the point at which a tax-free savings account becomes clearly better, since its growth is entirely untaxed. See the TFSA calculator.

Where to keep it, by job

• Emergency fund — immediate access matters more than rate. Aim for three to six months of essential expenses;
• Known expense within a year or two (school fees, a deposit, a wedding) — a notice or fixed deposit usually pays more, and the lock-up is a feature because it stops you dipping in;
• Long-term growth — a savings account is the wrong tool. Use a TFSA and, beyond it, diversified investments;
• Money you are protecting from yourself — a 32-day notice account adds useful friction without real cost.

Compare live rates on our savings account comparison — the gap between the best and worst rate on the same money is usually larger than people expect, and switching costs nothing.

Making the projection actually happen

1. Automate it on payday, before the money can be spent. Willpower is not a savings strategy;
2. Separate the pots. Emergency fund, holiday, school fees — mixing them means one shock destroys all of them;
3. Increase it with every raise before the money joins your lifestyle;
4. Do not chase rates obsessively. A slightly better rate on a small balance is worth less than one extra monthly contribution.

What beats saving

Worth stating plainly, because it outranks anything this calculator will show you: clearing expensive debt is a guaranteed, tax-free return.

Credit cards are capped at 21% and unsecured personal loans at 28%. No deposit account pays anything close. If you are carrying either while building savings, keep a small buffer and put the rest against the debt — the debt payoff planner sequences it. The one exception is an employer retirement match, which is an immediate guaranteed return.

Frequently asked questions

What rate should I use?

A rate you have actually been quoted, and remember to think in after-tax terms above the exemption. Check current offers in the savings comparison.

Do I pay tax on my savings?

On the interest, above R23,800 a year (R34,500 at 65+), at your marginal rate. Banks report interest to SARS, so it appears on your assessment whether or not you declare it.

Savings account or TFSA?

Both. Keep the emergency fund in an accessible savings account — withdrawing from a TFSA permanently consumes lifetime allowance — and use the TFSA for long-term growth.

Is a fixed deposit worth locking money away for?

Usually a better rate in exchange for access. Suits a known future expense; unsuitable for an emergency fund.

How much should my emergency fund be?

Three to six months of essential expenses, based on take-home pay. If your income is variable or commission-based, aim higher.

Interest exemptions are the 2026/27 values (R23,800 under 65, R34,500 at 65 and over). NCA caps are 21% for credit facilities and 28% unsecured at the current 7.00% repo. Projections assume a constant rate and uninterrupted contributions. General information, not financial advice.