Tax free savings account
What is a TFSA?
With a TFSA from Investec Investment Management Services, both the growth and income you receive on your investment are tax free - no capital gains tax (CGT) and no income tax are levied on the dividends and interest received.
Here’s how it works:
What you do
- You select one or more funds from the Investec range of funds (Investec Fund Managers) - View our Core Fund range
- You make a once-off and / or monthly investment into your TFSA account
What happens with your money
- The fund managers, in this case Investec, invest your money in a portfolio of assets such as equities, bonds, cash and listed property, based on your fund selection.
- We then manage the investment on your behalf according to the fund’s objectives, for example, beating inflation over a certain time period, this determines the return on your investment.
The benefits of investing in a TFSA
- As TFSAs are not subject to income or capital gains tax, they provide a convenient and flexible way to accumulate savings over time.
- Parents can invest on behalf of minors (withdrawals must be paid into a bank account in the minor’s name).
- Lump sum: R10 000
- Monthly: R500
If you exceed the maximum investment amounts, you will be subject to 40% tax. These limits are:
- R2 750 per month
- R33 000 per tax year
- R500 000 over your lifetime
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 use a portion of your tax free limits.
- TFSAs are exempt from tax on dividends and capital gains
You can invest in a solution in one of three ways
Invest through a financial advisor
Getting expert advice about your investment choices can give you financial peace of mind. We have a list of financial advisors from across the country who have the appropriate qualifications and licences to help you make informed investment choices.
Start a new online investment
If you are sure this is the appropriate solution for you, you can invest directly online using our convenient online form.
If you don’t yet know which funds you want to choose as your underlying investments, view our core funds.
Are you an existing investor?
If you are already invested with us then the simplest way to invest is via your online account.
Simply login below to ensure all your investments are managed together.