T
Banking
Tax-Free Savings Account (TFSA)
Money you save that earns interest tax-free. All the growth stays yours — no SARS tax. You can put in R36,000 a year, R500,000 lifetime. Most SA banks offer TFSA. It's one of the best ways to build wealth without the government taking a cut.
Usage Examples
"Bongani opened a TFSA at FNB and puts in R500 a month. After 10 years earning 7%, he'll have about R95,000. No tax on that growth. With a regular savings account paying tax, he'd have less. TFSA wins."
"Nomsa saves R3,000 a year in her TFSA at Capitec. Over 20 years at 6% compound interest, it grows to about R98,000 completely tax-free. If she put it in a normal account, SARS would take a cut each year. TFSA is lekker."
"Andile tried to contribute R50,000 to his TFSA in one year but the limit is R36,000. The extra R14,000 had a 40% penalty tax — R5,600. Now he waits and spreads contributions across two years. Learn the limits."