Should you keep spare cash in your access bond or invest it?
Compare the interest an access bond saves you (untaxed) against what an interest-bearing investment would earn after tax, using your own numbers.
This tool compares two after-tax outcomes side by side
Your Numbers
Tax Situation
Access Bond Saving
R 10 500,00 / year
Not taxable — interest avoided isn't income
Investment After Tax
R 9 000,00 / year
R 0,00 tax on R 9 000,00 pre-tax interest
Break-Even Investment Return
10,50%
Pre-tax return an investment would need to match the R 10 500,00/year bond saving, given your tax rate and remaining exemption headroom
Side by Side
| Path | Yearly Amount |
|---|---|
| Bond interest saved (untaxed) | R 10 500,00 |
| Investment interest, pre-tax | R 9 000,00 |
| Tax on investment interest | R 0,00 |
| Investment interest, after tax | R 9 000,00 |
Parking R 100 000,00 saves ~R 10 500,00/year in bond interest; investing it at 9% earns ~R 9 000,00 after tax.
How the maths works
Every rand parked in an access bond reduces the balance interest is charged on, at the bond's own interest rate. Because this is a reduction in interest charged rather than income received, it is not taxable — the full bond rate is the after-tax outcome.
Interest earned from an investment account is income, and is taxed at your marginal rate — but only above the SARS annual interest exemption (R23 800,00 for those under 65, unchanged since 2022). If you already earn interest elsewhere this tax year, that uses up part of the exemption first — this tool subtracts your existing interest income from the exemption to work out your remaining headroom before taxing the rest at your marginal rate.
Source: SARS interest and dividends exemption thresholds (sars.gov.za), confirmed unchanged since the 2022 tax year.
Frequently asked questions
This is an estimate only, not financial or tax advice, and we are not a financial services provider (FSP). Your actual figures depend on your lender or provider, and your personal circumstances. Your actual tax position depends on your full income, other exemptions, and personal circumstances — confirm your marginal rate and exemption usage with SARS or a registered tax practitioner before acting on these figures.