• Your money can grow faster in a tax-free savings account compared to a regular savings account because you don't pay tax on the investment return.
• Any interest, dividends or capital gains from your tax-free savings account will be free of tax.
• You can withdraw from your investment at any time.

• Contributions to a tax-free savings account are made from post-tax income.
• A tax-free savings account is therefore an effective way to save for your goals, because any interest, dividends or capital gains from your tax-free savings account will be free of tax.
• No tax is payable on withdrawals.

• The annual contribution limit, which is currently R36 000 per tax year.
• The total lifetime contribution may not exceed R500 000.

There is no limit on the number of tax-free savings accounts you can have.

The effect of compound interest, or earning investment return on investment return, is increased in a tax-free savings account due to the tax relief on the investment return. The longer you invest the more benefit you will get.

SARS will impose a tax penalty of 40% on excess contributions.

Yes, you can apply for a Tax-free Investment on behalf of your child or other family member, but keep in mind that you will be using part of their tax-free allowance, which may limit their ability to save for themselves via this type of product later.

A tax-free savings account can only be opened for an individual.