What is a Tax-Free Savings Account?
It’s a new way to save without incurring any tax at all, meaning more of your money is available to benefit from the power of compounding. It’s the ideal way to save for the medium to long term, especially for those in higher income tax brackets.
|Pay no tax on your
dividends, interest or capital
|You can start, stop
or withdraw at any time
|One simple application form
Contact an advisor
How does it work?
You can save up to R30 000 per tax year (up to a maximum of R500 000 over your lifetime).
- Remember that this applies across all your tax-free savings accounts, so if you have more than one, be sure not to exceed the limits, because excess contributions will be taxed at 40%.
- The annual limit does not roll over, and resets to R30 000 at the beginning of each tax year.
- You have full access to your money at any time, without penalties or tax
- However, you may not deposit more than your annual limit, so be sure not to withdraw unnecessarily, as you will not be able to top back up again.
What are my investment options?
The Power of Compounding
Paying no tax on your investment can make a substantial difference over time, as illustrated in the chart below.
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