# Understanding your accounts

## Overview of the account system

Fynbos organizes your money across different account types, each designed for a specific purpose. All deposits flow through your Cash account before being distributed to your other accounts.

- **Goal-based organization**: Each account type serves a specific financial goal
- **Centralized money flow**: All deposits land in Cash first, then move to destination accounts
- **Automation ready**: Set up rules to automatically distribute money across your accounts

Your accounts appear on the home screen, showing your balance in each. Tap any account to view details, transfer money, or adjust settings.

## Cash account

Your Cash account is the central hub for all money movement in Fynbos. Every deposit lands here first, whether from a debit order or EFT transfer.

- **Entry point for deposits**: All incoming money arrives in Cash
- **Transfer hub**: Move money from Cash to any other account
- **Withdrawal source**: All withdrawals come from your Cash account

Think of Cash as your financial sorting station. Money flows in, you decide where it goes (or configure your automation rules to decide for you), and it flows out to the right accounts.

**What this means for you**:

- Check your Cash balance to see unallocated funds
- Set up automation rules to distribute deposits automatically
- Transfer to Cash first when moving money between accounts

## Emergency Savings

Emergency Savings is your financial safety net, designed for unexpected expenses like medical bills, car repairs, or job loss.

- **Instant access**: Transfer to Cash immediately when you need funds
- **Earns interest**: Invested in the Allan Gray Money Market Fund (AGMF)
- **Target tracking**: Set a goal and monitor your progress

Most financial advisors recommend saving 3-6 months of essential expenses in an emergency fund. You can set your target amount and Fynbos will show your progress toward that goal.

**What this means for you**:

- Your money grows daily through interest earnings
- Access funds instantly without penalties or waiting periods
- Use automation rules with stop at target to fill your emergency fund first

## Tax-Free Savings Account (TFSA)

Your Tax-Free Savings Account lets you invest without paying tax on the growth, dividends, or interest earned. It's one of the most tax-efficient ways to build long-term wealth in South Africa.

- **Tax-free growth**: No tax on capital gains, dividends, or interest
- **Annual limit**: R46,000 per tax year (March to February)
- **Lifetime limit**: R500,000 total contributions
- **Choose your strategy**: Select your own fund allocation

When you create a TFSA, Fynbos asks about any contributions you've made elsewhere this tax year to help you stay within the annual limit.

> **Important**: Exceeding your annual or lifetime contribution limits results in penalties from SARS. Fynbos tracks your contributions to help you stay within limits, but you're responsible for tracking contributions at other providers.

**What this means for you**:

- Maximize this account before investing in taxable accounts
- Plan contributions across the tax year (March to February)
- Withdrawals don't restore your contribution limit — once used, that limit is gone

## Savings pots

Savings pots let you organize your savings into separate goals, each with its own name, colour, and target amount.

- **Multiple goals**: Create as many pots as you need
- **Instant liquidity**: Access your money anytime
- **Earns interest**: Invested in the Allan Gray Money Market Fund (AGMF)
- **Customizable**: Name and colour each pot to match your goal

Create pots for holidays, a new laptop, wedding, home deposit, or any other goal. Each pot tracks its own balance and progress toward your target.

**What this means for you**:

- Keep savings goals separate and organized
- Set targets and track progress for each goal
- Use automation rules to fill pots based on priority

## Investment Account

Investment accounts let you invest in a range of funds with a strategy you define.

- **Custom strategy**: Choose your own fund allocation
- **Broad selection**: Access to equity funds, balanced funds, and more
- **Long-term growth**: Designed for building wealth over time
- **Create multiple**: Open several accounts for different investment goals

Unlike Savings pots and Emergency Savings, Investment accounts hold actual fund units that fluctuate in value. Your investment strategy determines how money is split across funds when you transfer in.

**What this means for you**:

- View your current holdings and their performance
- Adjust your strategy anytime to change future investments
- Selling holdings takes 2-3 business days to settle

## Retirement Annuity (RA)

A Retirement Annuity is a tax-advantaged account for long-term retirement savings. Your contributions are tax-deductible up to certain limits, and your money grows tax-free until retirement.

- **Tax-deductible contributions**: Reduce your taxable income by up to 27.5% of your earnings
- **Long-term investment**: Designed for retirement at age 55+
- **Choose your strategy**: Select your own fund allocation
- **Beneficiaries**: Nominate who receives your RA if something happens to you

Your RA shows separate balances for different components under the **two-pot system**: vested amounts (savings before September 2024), savings pot (withdrawable once per tax year), and retirement investments (locked until age 55).

> **Important**: While the two-pot system allows limited withdrawals from your savings pot, the retirement and vested components remain locked until age 55 (except for emigration or disability). Consider your timeline before contributing.

**What this means for you**:

- Contributions reduce your tax bill this year
- Money grows tax-free until retirement
- Limited early access through the savings pot (once per tax year)
- Name beneficiaries to protect your loved ones

## How accounts work together

Your Fynbos accounts form a system where money flows through Cash to reach its final destination. Understanding this flow helps you set up effective automation rules.

**Money flows in one direction**:

1. Deposits (EFT or debit order) land in your **Cash** account
2. From Cash, money moves to destination accounts
3. To withdraw, money returns to **Cash** first

**Example flow**:

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**Transfers between accounts** always route through Cash. For example, moving money from Emergency Savings to your TFSA requires two steps: transfer to Cash, then transfer to TFSA.

| Account type | Create multiple? | Instant liquidity? | Investment strategy |
| --- | --- | --- | --- |
| Cash | No | Yes | 100% cash |
| Emergency Savings | No | Yes | Allan Gray Money Market Fund |
| Tax-Free Savings | No | Yes (selling required) | User-defined |
| Savings pots | Yes | Yes | Allan Gray Money Market Fund |
| Investment Account | Yes | No (selling required) | User-defined |
| Retirement Annuity | No | No (locked until age 55) | User-defined |