Save money towards a South African child’s tertiary education with this initiative by the Department of Education and The Association for Savings and Investment South Africa.
Educational Savings Account
The South African Government rewards citizens who save for a child’s education. The Fundisa Fund is a savings account, which can only be used for a child’s education at a recognized college or university.
High Yield Saving Account
This high yield saving account is exceptionally high yielding as the government pays a bonus of 25% per year for the first R2400 invested. The bonus is calculated in October and paid into the account in January.
Unit Trust investments
The money is invested in unit trusts, which grow on average by over 8% a year. Add to this the 25% bonus paid by the government, and the return on the investment is over 33%.
Save for Education
It’s never too early to start saving for a child’s tertiary education. Fundisa requires a minimum monthly investment of R40, or alternatively, lump sum payments. It is not only open to relatives of the child- anyone can contribute to the student’s fund at any time.
Student Education Grants
Only one Fundisa account can be opened per child. If the child decides not to study further after school, the fund can be transferred to another child. However, the fund must be used before the child turns 35, or the government bonus will be lost.
Paying for Student Education
When the student has been accepted by a tertiary college or university, the bank where the account is held issues a certificate, which the student hands to the fees department at the college or university. The college then claims from the National Student Financial Aid Scheme.
Open a Savings Account
The Fundisa fund is managed by Stanlib, and sold through the Post Office and three national banks – Standard Bank, Nedbank and Absa. Applications for Fundisa accounts can be downloaded from the Association for Savings and Investment South Africa (Asisa) website.
Funds for Education
Paying for a child’s tertiary education can be one of the largest costs in a parent’s budget. For many people paying for three or four years of University is out of the question. By starting early, and taking advantage of the government’s funding for education, a large proportion, if not all of the fees, can be saved before the child reaches school leaving age.
Quality Tertiary Education
A quality education is the best gift a parent or relative can give a child, equipping him or her with skills and training for life. With a Fundisa account the dream of your child becoming a doctor, lawyer, teacher or engineer is that much closer.