Tax free savings accounts (TFSA) are working: Are you taking advantage of them?

In the 2015 Budget, Finance Minister Nene introduced a tax free savings incentive. It allowed R30,000 per person per annum to be invested in a variety of funds including unit trusts, exchange tracker funds (ETFs), savings accounts and insurance products. The TFSA is capped at R500,000 contribution per individual.

Within four months of the launch of TFSA more than R280 million rand had been invested by more than 46,000 investors. Research has shown that TFSAs will outperform other traditional investments as there is no tax payable.

If you haven’t yet invested in TFSAs speak to your accountant or broker.