T
Banking
Tax-Free Savings Account (TFSA)
A savings or investment account where all returns — interest, dividends, and capital gains — are completely exempt from tax. South Africans can contribute up to R36,000 per year and R500,000 over their lifetime to a TFSA. Available at most banks and investment platforms.
Usage Examples
"He opened a TFSA with R500 per month, knowing all the growth would be completely tax-free."
"With a lifetime limit of R500,000, a tax-free savings account is one of the best long-term wealth-building tools available to South Africans."
"Exceeding the annual R36,000 TFSA contribution limit results in a 40% penalty tax on the excess amount."