An introduction to the tax-free savings guide
This second, updated edition of savetaxfree.co.za’s guide to tax-free savings accounts (TFSAs) is designed to provide new and
experienced investors with everything they need to know about tax-free savings accounts.
It begins with an outline of the basic concepts, including the various investment options and regulatory restrictions.
The core of the guide is a complete directory of the TFSAs available on the market. For each TFSA we include information on the risk level, underlying investments, costs and ideal
investment period. We believe we have every TFSA in SA listed in the directory but there may be a few that we’ve missed.
Introduced in March 2015 by National Treasury, the aim was to promote a savings culture in SA. In that, there is considerable
success with 262 493 accounts opened in their first year of operation holding a total of R2.6bn in assets, according to research by Intellidex. Solid progress but still a long way to go.
As Sasfin wealth planner Gavin Came points out on page 16, debt is a massive problem in SA and it is questionable if tax-free savings are the appropriate vehicle to address this. There are also tax benefits associated with other investment products and it is extremely important for consumers to be educated about the pros and cons of each option. That is certainly an issue the
industry and Treasury need to address.
TFSAs were never meant to be a panacea to SA’s financial woes, however, their advantages are numerous and are well spelt out by Charles Savage, CEO of Purple Group.
Companies that offer TFSAs – mainly banks, stockbrokers and asset managers – are by and large happy with the concept
and progress made so far. But they spell out what changes they would like and identify areas of concern.
We hope you find this guide useful.
Please don’t hesitate to contact me with any feedback on firstname.lastname@example.org. ■