A good helper for national financial management - TISA account

        In order to encourage long-term investment and early retirement preparation among the public, the Financial Supervisory Commission has instructed the Central Depository and Clearing House to establish a Taiwan Individual Savings Account (TISA) mechanism, drawing on Japan's NISA (Nippon Individual Savings Account) and the UK's ISA (Individual Savings Account) system, to achieve asset accumulation goals through medium - and long-term fixed investments. Initially focused on funds, it may expand to include financial products such as stocks and ETFs in the future. More related information can be found in this issue's' Finance Column '.

        Account opening restrictions

        The TISA system will be officially launched on June 30, 2025. The public can only open one TISA account at each sales institution, but can open TISA accounts separately at different banks, securities firms, or fund sales platforms. TISA level funds subscribed by various institutions will be credited to their respective TISA accounts, and individuals can access all their TISA accounts and investment targets through the centralized insurance platform.

        The difference between TISA and general brokerage accounts

        

        Different investment targets

        TISA account: Currently, it can only invest in "TISA funds" that have been officially screened and designed specifically for long-term savings.

        General brokerage account: can invest in stocks ETF、 Various financial products such as bonds and various funds.

        Restrictions on investment methods

        TISA account: Currently, it can only be subscribed through a "fixed amount" method, with a minimum amount of NTD 1000, and must be deducted continuously for 24 months.

        General brokerage account: You can freely choose to invest in a single or regular fixed amount, with great flexibility in the amount, and there is no mandatory requirement for continuous deduction.

        Fees and Discounts

        TISA account: Subscription for TISA funds is free of handling fees, while the Manager fee is less than 1%.

        General brokerage accounts: Most funds and stocks charge transaction fees, while manager fees vary depending on the product.

        Applicable subjects

        TISA account: Limited to natural persons (Taiwan residents and foreign nationals residing in Taiwan).

        General brokerage accounts: Both natural persons and legal entities can open accounts.

        Characteristics and advantages of TISA system

        Special account mechanism: TISA is not a new investment commodity, but an investment account. After the public applies to open an account with participating institutions (banks, securities, investment banks, etc.), the account will be clearly divided into TISA assets and general investment positions.

        Low threshold and cost discounts: With lower starting points (such as monthly fixed quotas starting at 1000 yuan), free handling fees, and low manager fees, we encourage people to participate in investment and have the opportunity to compete for tax incentives in the future.

        Long term investment orientation: Encourage regular fixed amounts, holding for a longer period of time, and avoid frequent short-term trading to develop the habit of long-term asset allocation.

        Expert selection: Fund products are selected by the TISA Fund Committee and included in stock, bond, and asset allocation funds with long-term investment value.

        TISA level funds are not newly issued fund products, but rather the concept of a 'discounted special version'. In other words, this fund already exists in the market, but the investment trust company has specially designed a free and low manager fee version for TISA account investors to purchase in fixed amounts in New Taiwan Dollars on a regular basis. In addition, TISA funds do not carry interest, but instead roll the interest into the net asset value to increase the compounding effect. For investors, they not only do not have to worry about the taxation of interest income, but also have no expenses such as second-generation health insurance supplementary premiums, which can save the hidden investment costs mentioned above. If we could combine the mandatory savings of the labor pension system with the advantages of deferred tax burden, it would be a better choice.

        TISA account is a major system designed to address the aging population, encourage people to plan for medium and long-term investments in advance, and create a national financial culture. It also provides investors with a high-quality new option of "low threshold, regular quota, and long-term accumulation", avoiding many people from giving up financial management due to information asymmetry or complex operations, and avoiding short-term and emotional trading, which helps gradually accumulate wealth. However, investors should first understand their own retirement gap and available funds before evaluating whether to include TISA accounts in their investment portfolio. At the same time, they should continue to pay attention to policy changes, such as whether there will be tax incentives in the future, expansion of investment targets (including stocks, ETFs, etc.), etc., to protect their own rights and interests.

        TISA Account Inquiry Platform of Collective Insurance Settlement: https://tisa.tdcc.com.tw/home/ssm101

        TISA Zone of Investment Advisory Association: https://www.sitca.org.tw/ROC/TISA/index.html

        Stock Exchange Securities Investment Anti Fraud Zone: https://www.twse.com.tw/anti-fraud/zh/index.html

        Anti fraud consultation and verification

        Anti fraud hotline: 165

        Securities and Futures Anti Fraud Consultation Hotline: (02) 2737-3434

        Oriental Securities Corporation Customer Service Hotline: 0800-088-567

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