Keep 100% of Your Returns.
Pay Zero Tax.
A Tax-Free Savings Account (TFSA) is one of the most powerful tools for building long-term wealth in South Africa. You pay absolutely no tax on the interest, dividends, or capital gains your money earns.
The Basics
How Does a TFSA Work?
Introduced by the South African government to encourage saving, a TFSA shields your investment growth from the taxman. However, there are strict contribution limits you must adhere to.
Annual Limit
You can contribute a maximum of R46,000 per tax year (1 March to 28/29 February). This equates to R3,833 per month.
Lifetime Limit
You are allowed a maximum lifetime contribution of R600,000. Once you hit this limit, you cannot add more funds.
Zero Tax on Growth
All interest, dividends, and capital gains earned within the account are 100% tax-free, forever.
Penalty Warning
If you exceed the R46,000 annual limit, SARS will penalize you with a massive 40% tax on the over-contributed amount.
Where is your money going?
Your Investment Options
A TFSA is just a "wrapper" that protects your money from tax. You still need to choose the underlying investments. We help you select the right vehicle based on your goals.
Cash & Money Market (Low Risk)
Offered by banks. Your capital is guaranteed, but returns are generally lower and may not beat inflation over the long term. Good for short-term goals.
Unit Trusts (Moderate to High Risk)
Professionally managed funds that invest in a mix of shares, bonds, and property. Ideal for long-term growth (5+ years) to maximize the tax-free compounding effect.
Exchange Traded Funds (ETFs)
Passive investments that track a specific index (like the JSE Top 40 or S&P 500). They offer low fees and excellent long-term growth potential.
Endowments
Offered by life insurance companies, these often come with guarantees but may have higher fee structures and lock-in periods.
Why Choose EBC?
Don't waste your tax-free allowance on low-interest bank accounts. We help you maximize your growth.
Independent Advice
We aren't tied to a single bank or asset manager. We compare the entire market to find the TFSA with the best underlying funds and lowest fees.
Maximizing Compound Interest
Because a TFSA is a long-term play, we typically recommend growth-oriented Unit Trusts or ETFs to ensure your money beats inflation significantly.
Contribution Monitoring
We help you set up your debit orders and monitor your annual contributions to ensure you never accidentally exceed the R46,000 limit and incur SARS penalties.
Ready to stop paying tax on your growth?
Start your tax-free savings journey today. Contact our wealth advisors to find the best performing funds for your TFSA.
Expert, independent investment advice.