A tax-free savings device intended for employees (employer’s benefit) and the self-employed for a period of six years or more. At the end of a period of six years, the balance in the fund can be withdrawn with an exemption from capital gains tax. Most training funds are managed by the investment houses and insurance companies in a wide variety of routes.
between the letters
- The maturity of the fund for withdrawal is always determined according to the date of the first deposit in the fund.
- It is possible to transfer training funds between organizations at no cost and without prejudice to the member’s rights at any time.
- The cessation of deposits to the fund has no meaning.
- The selection of the fund is always made by the employee and not by the employer according to law.
- Withdrawals from the training fund can be made after 3 years when the member has passed retirement age or for training purposes only.
The tips of Lamda experts
- It is of central importance to choose the body that manages the training funds and to choose the route of investment in the fund, since over the years the differences between the funds can reach tens of percent.
- It is recommended not to withdraw a training fund after 6 years, after about 6 years the fund continues to be liquid and tax-free including future profits!
- The younger we are, it is recommended to choose investment paths with a higher risk level in order to maximize the savings in the long-term training fund.
- You can get a loan on preferential terms against the funds of the training fund directly from the fund without the involvement of the bank.
- If you have 2 education funds when one fund is liquid (six years have passed since the date of the first deposit into the fund) and the other is not liquid (six years have not passed since the date of the first deposit into the fund) you can withdraw the 2 funds according to the seniority mechanism.
- The training fund should be looked at as an investment portfolio for everything, since it is our personal funds for savings which are invested in the capital market according to our choice only and without the employer’s conditions. Therefore, we recommend dispersing assets in a way that matches the needs of the client and the family unit.