Tax-free investments
Last updated: 22 Dec 2025
A Tax-Free Savings Account (TFSA) is a specific type of investment account where you pay no tax on any income generated from the investment. Despite being one of the most powerful investment vehicles available since 2015, it remains chronically underused.
Why TFSAs matter
The TFSA isn't actually a savings account, it's much more powerful than that. Think of it as a legal wrapper around your investments that protects any income or gains from tax obligations. This includes capital gains, dividend income and interest income.
The tax benefits start small but become significant over decades of compound growth. While you contribute after-tax income, every rand earned inside your TFSA is yours to keep—completely tax-free. Over a 20-30 year investment period, this protection can save you hundreds of thousands in taxes.
A maxed-out TFSA left untouched until retirement will likely outperform retirement annuities or pensions because you pay no tax on withdrawals, have fewer investment restrictions, and maintain full control over when and how much to withdraw.
How it works
Contribution limits
You can contribute a maximum of:
R36,000 per year
R500,000 in your lifetime
SARS checks your contributions each tax year (ending in February) via IT3 tax certificates from your TFSA provider. It will take at least 14 years to reach your lifetime limit if you contribute the full R36,000 annually.
You can open TFSAs at banks or various financial service providers. However, opening one at a bank limits your options and wastes the tax-free benefit, as you likely already qualify for a tax exemption on interest income.
The golden rules
Invest in your TFSA first - Make it your top investment priority after emergency savings are in place.
Withdraw from your TFSA last - Only in absolute emergencies. Let compound growth work its magic over decades.
Key considerations
TFSAs are designed for long-term investing, not short-term savings. The longer your money stays invested, the more powerful the tax-free benefit becomes.
Where to invest your TFSA funds:
Go offshore - Invest in foreign currencies (USD, global markets) to protect against possible rand depreciation.
Focus on equities - Historically the best long-term returns, essential for investors with decades ahead.
Minimise fees - Every basis point matters over time. Choose passive index-tracking ETFs over actively managed funds.
Fynbos TFSA
The Fynbos TFSA offers the lowest total costs with no platform fees and only 0.08% brokerage fees—better prices than any competitor.
Key features:
Full offshore investment access
Broad equity fund selection
No hidden costs or account fees
Simple management through your Fynbos dashboard
Getting started
Research low-fee ETFs with offshore exposure and equity focus
Open your Fynbos TFSA account
Set up automatic monthly contributions to use your full R36,000 annual limit
Invest and leave it alone—don't panic during short-term volatility
Review & maintenance
Continue maxing out your TFSA annually until you hit the R500,000 lifetime limit. Review your investment selection every few years to ensure fees remain competitive and your asset allocation matches your goals.
A Tax-Free Savings Account (TFSA) is a specific type of investment account where you pay no tax on any income generated from the investment. Despite being one of the most powerful investment vehicles available since 2015, it remains chronically underused.
Why TFSAs matter
The TFSA isn't actually a savings account, it's much more powerful than that. Think of it as a legal wrapper around your investments that protects any income or gains from tax obligations. This includes capital gains, dividend income and interest income.
The tax benefits start small but become significant over decades of compound growth. While you contribute after-tax income, every rand earned inside your TFSA is yours to keep—completely tax-free. Over a 20-30 year investment period, this protection can save you hundreds of thousands in taxes.
A maxed-out TFSA left untouched until retirement will likely outperform retirement annuities or pensions because you pay no tax on withdrawals, have fewer investment restrictions, and maintain full control over when and how much to withdraw.
How it works
Contribution limits
You can contribute a maximum of:
R36,000 per year
R500,000 in your lifetime
SARS checks your contributions each tax year (ending in February) via IT3 tax certificates from your TFSA provider. It will take at least 14 years to reach your lifetime limit if you contribute the full R36,000 annually.
You can open TFSAs at banks or various financial service providers. However, opening one at a bank limits your options and wastes the tax-free benefit, as you likely already qualify for a tax exemption on interest income.
The golden rules
Invest in your TFSA first - Make it your top investment priority after emergency savings are in place.
Withdraw from your TFSA last - Only in absolute emergencies. Let compound growth work its magic over decades.
Key considerations
TFSAs are designed for long-term investing, not short-term savings. The longer your money stays invested, the more powerful the tax-free benefit becomes.
Where to invest your TFSA funds:
Go offshore - Invest in foreign currencies (USD, global markets) to protect against possible rand depreciation.
Focus on equities - Historically the best long-term returns, essential for investors with decades ahead.
Minimise fees - Every basis point matters over time. Choose passive index-tracking ETFs over actively managed funds.
Fynbos TFSA
The Fynbos TFSA offers the lowest total costs with no platform fees and only 0.08% brokerage fees—better prices than any competitor.
Key features:
Full offshore investment access
Broad equity fund selection
No hidden costs or account fees
Simple management through your Fynbos dashboard
Getting started
Research low-fee ETFs with offshore exposure and equity focus
Open your Fynbos TFSA account
Set up automatic monthly contributions to use your full R36,000 annual limit
Invest and leave it alone—don't panic during short-term volatility
Review & maintenance
Continue maxing out your TFSA annually until you hit the R500,000 lifetime limit. Review your investment selection every few years to ensure fees remain competitive and your asset allocation matches your goals.
A Tax-Free Savings Account (TFSA) is a specific type of investment account where you pay no tax on any income generated from the investment. Despite being one of the most powerful investment vehicles available since 2015, it remains chronically underused.
Why TFSAs matter
The TFSA isn't actually a savings account, it's much more powerful than that. Think of it as a legal wrapper around your investments that protects any income or gains from tax obligations. This includes capital gains, dividend income and interest income.
The tax benefits start small but become significant over decades of compound growth. While you contribute after-tax income, every rand earned inside your TFSA is yours to keep—completely tax-free. Over a 20-30 year investment period, this protection can save you hundreds of thousands in taxes.
A maxed-out TFSA left untouched until retirement will likely outperform retirement annuities or pensions because you pay no tax on withdrawals, have fewer investment restrictions, and maintain full control over when and how much to withdraw.
How it works
Contribution limits
You can contribute a maximum of:
R36,000 per year
R500,000 in your lifetime
SARS checks your contributions each tax year (ending in February) via IT3 tax certificates from your TFSA provider. It will take at least 14 years to reach your lifetime limit if you contribute the full R36,000 annually.
You can open TFSAs at banks or various financial service providers. However, opening one at a bank limits your options and wastes the tax-free benefit, as you likely already qualify for a tax exemption on interest income.
The golden rules
Invest in your TFSA first - Make it your top investment priority after emergency savings are in place.
Withdraw from your TFSA last - Only in absolute emergencies. Let compound growth work its magic over decades.
Key considerations
TFSAs are designed for long-term investing, not short-term savings. The longer your money stays invested, the more powerful the tax-free benefit becomes.
Where to invest your TFSA funds:
Go offshore - Invest in foreign currencies (USD, global markets) to protect against possible rand depreciation.
Focus on equities - Historically the best long-term returns, essential for investors with decades ahead.
Minimise fees - Every basis point matters over time. Choose passive index-tracking ETFs over actively managed funds.
Fynbos TFSA
The Fynbos TFSA offers the lowest total costs with no platform fees and only 0.08% brokerage fees—better prices than any competitor.
Key features:
Full offshore investment access
Broad equity fund selection
No hidden costs or account fees
Simple management through your Fynbos dashboard
Getting started
Research low-fee ETFs with offshore exposure and equity focus
Open your Fynbos TFSA account
Set up automatic monthly contributions to use your full R36,000 annual limit
Invest and leave it alone—don't panic during short-term volatility
Review & maintenance
Continue maxing out your TFSA annually until you hit the R500,000 lifetime limit. Review your investment selection every few years to ensure fees remain competitive and your asset allocation matches your goals.
What is Fynbos?