Frequently Asked Questions

Investec Private Bank

Investec International (USD) 

Nedbank

Discovery Bank

Rutherford Private Clients act as your intermediary between you and the bank. This allow us to offer Corporate rates to individuals which is much better than individual rates offered by most traditional banks. The bank also offer on top of this bonus rates for clients with a average fund balance of 85% over a calender month. 

No banking fees. Annual maintanance fee of R185 applicable per client no matter how many accounts!

South African Trusts

South African Companies

South African Individuals

Foreign Individuals

Foreign Companies

A USD Notice deposit account that offers you a competitive USD interest rate. Enables you to save in USD. Giving you access with no minimum deposit. No monthly account fees, transaction costs and foreign exchange charges may apply. The deposit is held on the Investec Bank Limited balance sheet. All transactions to and from these accounts are subject to compliance with SARB exchange control regulations.

Money market related interest rate, approximating the average of the top four qualifying South African retail money market funds every day. Funds are available on call. 

Withdrawals and additional deposits may be made at any time. Withdrawals instructed before 14h00 on any business day will reflect the same day in nominated account.

A recurring instruction entered on the system by the banking intermediary allows repeat transactions at set frequencies, ie weekly, monthly, quarterly, half-yearly and annually. EFT withdrawals may be pre-authorised. All other transactions require authorisation on value date.

The investment may remain open-ended, ie no maturity date needs to be inserted, which will allow the investment to remain on the 32-day notice scheme until notice is given. On maturity, funds will default to a call investment and earn interest at the call rate.

Term of investment is fixed. The interest rate is fixed and guaranteed for the term of the investment. No access to the funds is allowed during the term of the investment. You can add a liquidity option to the fix term savings with a term of your choice. For example 46 Day fix deposit with a 30% liquidity option. This will mean should you need cash within the 46 day period you have the option to withdraw 30% of the savings value.

Airbnb investing refers to when an investor buys a property with the purpose of listing it (or individual rooms) on Airbnb, as opposed to using it as a primary residence. 

• A great source of passive income .
• More lucrative than traditional real estate investment
• You can use your vacation home for your own purposes
• A diversified portfolio of tenants
• More control over your home than with traditional renting 
• More choice when it comes to the type of guest you want to attract

Fractional ownership is a method in which several unrelated parties can share in, and mitigate the risk of, ownership of a high-value tangible asset, like real estate.

• Any increase in the value of the property accrues to the shareholders.
• Better value for money - you only pay for your utilisation and not for the remainder of the year.
• Affordable ownership in exclusive destinationss

In a full title property, the buyer takes ownership of the land and everything which is built on it.

The major benefit of buying a full title property is that you may do whatever you please to your property within the restrictions of your municipal regulations. 

To quickly figure out how much capital gains tax you'll pay - when selling your asset, take the selling price and subtract its original cost and associated expenses (like legal fees, stamp duty, etc.). The remaining amount is your capital gain (or loss).

If you earn income from renting out a property, or even subletting a room in your home, you need to pay tax on it. Rental income will be added to any other taxable income you receive, such as a salary, or wages or dividends from shares.

• You Can Lower the Interest Rate on Your Mortgage.
• You Can Change Your Loan’s Terms
• You Can Get Cash to Use for Renovations or Other Purposes

1. Build Equity
2. Collect Documentation
3. Check Your Debt-to-Income (DTI) Ratio
4. Get an Appraisal
5. Save for Closing Costs

Affordability – Your affordability tells us whether or not you're going to be able to manage your monthly home loan repayments. Your bond repayment should not exceed 30% of your gross income.

Credit behaviour – Having and maintaining a healthy credit record is one of the most important personal finance assets one can have.

Highly reccomended not to purchase a property in personal capacity. Getting the most suitable structure for your needs can save you on income tax, capital gains tax, estate cost and assist with your continuation planning.

A model portfolio are a professionally blended combination of market-leading unit trust funds which are designed to provide a broad diversification of asset classes and management styles to help investors consistently achieve their target returns.

Many clients around the world experience poor investment returns even when stock markets have performed well, and this is usually a result of inconsistent fund selection. The professional approach of model portfolios provides more dependable investment returns.

A model portfolios benefit from a rigorous fund selection process and ongoing rebalancing to ensure optimum asset allocation at all times. You should therefore enjoy better long term returns and lower volatility.

Since our model portfolios are always aligned with your risk profile you do not have the risk of being over- or under-exposed to any one type of asset. You will essentially own a basket of assets which are well suited to your financial objectives and stage in life. 

Each model portfolio is designed to achieve a target return, taking into account a specified amount of risk as defined by your personal risk profile. This means that you will have a clear idea of the expected returns of the model portfolio before you invest. 

Humans have evolved to follow the herd (and so we end up buying yesterday’s winners) and this behavioural bias leads to poor investing habits, which is why really disciplined investors like Warren Buffett are so famous. Model portfolios provide a professional and disciplined framework, which will help you achieve more consistent returns and reach your investment goals.

One of the key benefits of our model portfolios is a high level of diversification.  The various asset classes (such as property or cash) perform very differently over market cycles. Our investors gain access to all the core benefits of multiple asset classes and fund manager expertise, with the added layer of diversification through our blend of fund managers. 

No. Using model portfolios is only a fund choice, so your existing RA, Living Annuity, Endowment or TFSA stays exactly the same – only the fund selected changes. 

Trusts have many purposes. In some cases, trusts are used as a way to look after families when the person who created the trust has passed away. Trusts are a wonderful tool to enable the creation and growth of a multi-generational nest egg.

The person or organisation who holds and manages the assets on behalf of the trust is known as the trustee. The group of people who benefits from the trust are known as the beneficiaries. A person who has the authority to remove and appoint trustees is known as the protector. (Only for International Trusts)

An international trust is an excellent way for you to build a nest egg outside of your country for you and your family. The trust is not resident in your country so it is safe from political and economic turmoil. Building up the nest egg in the trust over time also allows you and your children to access this capital should you wish to move abroad or if you or your children want to study abroad or gain international work experience.

Trustees are bound under law and by fiduciary duty to only act in accordance with the trust deed and letter of wishes of the person who created the trust. They cannot do anything with the assets beyond the specific instructions set out by the letter of wishes.

It is important that the trustees are based in the country where the trust has been created. The trustees have to exercise the effective management and control from this location. And, as indicated above, the trustees have to be licenced to carry out this function.

South African trusts generally only allows the trustees, on behalf of the trust, to hold South African and Rand based assets. International trusts can house assets in almost any currency almost anywhere in the world.

As no exchange controls apply in the location of the international trust, the international trust can have multiple accounts in different currencies, including the United States Dollar, the Euro and the British Pound.

It is very possible for a trust to be a beneficiary of a life insurance policy. Several insurance companies offer this option and it is a wonderful estate planning tool.

The beneficiaries are usually nominated when a trust deed and letter of wishes are put in place. An amendment can be carried out in the form of an addendum to the original trust deed, or an amended trust deed can be drafted to replace the original trust deed. The trustees can amend the trust deed if they receive an amended letter of wishes from the person who created the trust.

A family office is a supported by highly skilled professionals equipped to assist a family with corporate structuring, estate planning, fiduciary services, financial administration, income tax, investment management, philanthropic endeavours, and all other financial requirements. The purpose of a family office is to grow and preserve family wealth in a safe and tax-efficient manner.

Family Wealth officer assist in preserving and generating wealth through engaging with various stakeholders with the family to ensure the family can make an informed decision. A Wealth officer acts between you and your financial partner giving you one point of contact for all communication, independent views and one storage for all your financial requirements.

Through the use of the international company in Mauritius, your Family Office can invest into almost any asset class in almost any country in the world. Investments can be designed according to your preferences through guidance which will be provided by your Family Wealth Officer.

An international trust is an excellent way for you to build a nest egg outside of your country for you and your family. The trust is not resident in your country so it is safe from political and economic turmoil. Building up the nest egg in the trust over time also allows you and your children to access this capital should you wish to move abroad or if you or your children want to study abroad or gain international work experience.