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?

01

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

02

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

03

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.

Invest in a TFSA

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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.

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