Tax-free savings

Maximise the long-term growth of your savings by benefiting from a tax-free saving account (TFSA).
Maximise the long-term growth of your savings by benefiting from a tax-free saving account (TFSA).

What is a TFSA?

Tax-free savings accounts (TFSAs) were introduced in 2015 to encourage individuals resident in SA to save more. Through a TFSA, the growth and income received on the investment is tax free, which means you are not liable for any capital gains tax or income tax on the dividends and interest received on your investment.
What are the benefits of a TFSA?

Both the growth and income you receive on your investment are tax free – no capital gains tax (CGT) or income tax are levied on the dividends and interest received.

A TFSA is a convenient and flexible way to accumulate savings over time – as you won't incur tax, more of your money is available to benefit from the power of compounding.

How much can I invest in a TFSA?


Minimum investment amount: R500 per month or a larger lump sum amount supplemented with monthly contributions.


Maximum investment amount: R3 000 per month. R36 000 per tax year. R500 000 over your lifetime.


If you exceed the maximum investment amounts, you will be subject to 40% tax. If you withdraw money from an existing TFSA and re-pay it into any of these accounts, it will be seen as a new contribution and will count towards your investment limits.

You can invest from as little as R500 per month or as lump sums. Your lifetime allowance is R500 000 for yourself or on behalf of a minor.

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Important information

This communication was originally published by Investec Asset Management (Pty) Ltd, the predecessor of Ninety One SA (Pty) Ltd. The information is accurate as at the original date of publication, but any views expressed may no longer be current. The communication has been republished in our new branding but has not otherwise been updated.

All information provided is product related and is not intended to address the circumstances of any particular individual or entity. We are not acting and do not purport to act in any way as an advisor or in a fiduciary capacity. No one should act upon such information without appropriate professional advice after a thorough examination of a particular situation. This is not a recommendation to buy, sell or hold any particular security. Collective investment scheme funds are generally medium to long term investments and the manager, Investec Fund Managers SA (RF) (Pty) Ltd, gives no guarantee with respect to the capital or the return of the fund. Past performance is not necessarily a guide to future performance. The value of participatory interests (units) may go down as well as up. Funds are traded at ruling prices and can engage in borrowing and scrip lending. The fund may borrow up to 10% of its market value to bridge insufficient liquidity. A schedule of charges, fees and advisor fees is available on request from the manager which is registered under the Collective Investment Schemes Control Act. Additional advisor fees may be paid and if so, are subject to the relevant FAIS disclosure requirements. Performance shown is that of the fund and individual investor performance may differ as a result of initial fees, actual investment date, date of any subsequent reinvestment and any dividend withholding tax. There are different fee classes of units on the fund and the information presented is for the most expensive class. Fluctuations or movements in exchange rates may cause the value of underlying international investments to go up or down. Where the fund invests in the units of foreign collective investment schemes, these may levy additional charges which are included in the relevant Total Expense Ratio (TER). A higher TER does not necessarily imply a poor return, nor does a low TER imply a good return. The ratio does not include transaction costs. The current TER cannot be regarded as an indication of the future TERs. Additional information on the funds may be obtained, free of charge, at The Manager, PO Box 1655, Cape Town, 8000, Tel: 0860 500 100. The scheme trustee is FirstRand Bank Limited, PO Box 7713, Johannesburg, 2000, Tel: (011) 282 1808. A feeder fund is a fund that, apart from assets in liquid form, consists solely of units in a single fund of a collective investment scheme which levies its own charges which could then result in a higher fee structure for the feeder fund. The fund is a sub-fund in the Investec Global Strategy Fund, 49 Avenue J.F. Kennedy, L-1855 Luxembourg, Grand Duchy of Luxembourg, and is approved under the Collective Investment Schemes Control Act. This document is the copyright of Investec and its contents may not be re-used without Investec’s prior permission. Ninety One SA (Pty) Ltd is a member of the Association for Savings and Investment SA (ASISA). Ninety One SA (Pty) Ltd are authorised financial services providers.