So many advantages in one saving – it pays off!
There is no chance that you have not come across the term “education fund” – it simply comes up in many conversations in the financial context, and always in a positive context. There are good reasons for this.
An education fund is the only savings channel today, through which any employee or self-employed person can accumulate funds for any purpose that serves them, in the medium term.
6 years after opening the fund, you can redeem the funds as a one-time capital amount. If you want to cash out part of the funds before 6 years have passed, you will be able to redeem only part of the amount, keep the remainder of the money in the fund, and still continue to enjoy returns, which allow additional partial withdrawals as needed at any time.
We are here to tell you about the benefits of the education fund:
- There are unique tax benefits – this is the only medium-term savings tracks, which will earn you tax benefits on the deposits. In addition, after 6 years you can redeem the entire amount and profits you have accumulated in the fund, without paying tax.
- The level of risk is subject to your choice – you can choose a desired level of risk according to the risk profile that suits you, from a variety of tracks – from stable to specialist.
- It is possible to switch between tracks without loss – if you want to split some of the funds into other tracks, this is possible without any damage to rights or seniority.
- After 6 years – liquid assets and tax exemption – after 6 years from the opening of the fund, you can postpone the withdrawal of the money for any period of time that suits you. Any amount that is deposited into the fund after the end of the period will benefit from the rights of the fund. In the meantime, you can enjoy an ideal simple savings plan: liquid assets available at any time, as well as exemption from capital gains tax.
- Withdrawing funds from another fund without waiting – do you have more than one fund registered in your name? Did you accumulate 6 years of seniority in one of them? This gives you the option of withdrawing funds from the additional fund without waiting six years.