What is a Tax Free Savings Account?
From weddings to birthday milestone celebrations and big life events, it's never too early to start investing in your or your children's future.
If you save R800/month*, in less than 8 years, you could put over R150 000 towards that future big day.
A sizeable deposit can make a big difference to the affordability or offer to purchase on a new house.
If you save R1000/month*, you could have the deposit you need in 6 years.
It’s never too early to start saving and having a bit more in your budget could get you the car you’ve always wanted.
Saving R1300/month* could get you there in 8 years. But if you manage to save R1600/month, you could get there in 7 years.
Investing in your child’s education or looking to further your own? It is important to start as soon as possible - the more time you have to invest, the more time your money will have to grow.
Start by getting an idea of the costs of education in the future.
Want to live comfortably in your retirement? Maximise your investments by including a TFSA as part of your retirement savings strategy. You can start by saving as little as R250 a month to ensure you have money to help cover your expenses during your golden years.
Disclaimer: *This projection is based on investments into the Old Mutual Balanced Fund with an annual premium increase of 10%. Savings examples are estimates and for illustration purposes only, actual amounts may vary. Please note that past investment performance is neither indicative nor predictive of future performance. Furthermore, a TFSA has an annual saving limit of R36 000 and a lifetime limit of R500 000. If you exceed the limits, you will pay tax on your returns.
- Reach your goals, then make new ones
- Pay no tax on the growth of your investment
- Start with as little as R250
- Invest a maximum of R36 000 per tax year and R500 000 over your lifetime
- Quickly access your money when you really need it
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Learn more about tax, how to navigate your finances, and invest in your goals.
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In South Africa, there are limits on how much you can contribute tax free. You can invest a maximum of R36 000 per tax year and R500 000 over your lifetime.
Old Mutual charges an annual administration fee which is 0.5% of your fund value (if you invest in Old Mutual funds). This is deducted at the end of every month. A minimum administration fee will apply if you don’t have a regular investment set up.
Old Mutual's Online TFSA has a choice of 3 funds based on your risk profile. If a consumer is more advanced they can pick their own funds, in our advanced fund picker. For those that work with an adviser, the adviser will help select the funds that are suitable to their needs.
Returns (interest, dividends, capital gains) do not count towards annual or lifetime limits.
If you go over the limit for annual and lifetime contributions, you'll pay tax on 40% of your contributions.
The value of your TFSA can exceed R500,000 but you will pay tax.
Tax free savings accounts were created to encourage general savings, not just retirement. As a result, there is flexibility in terms of withdrawing money (without penalties) from the account whenever you need it.
Retirement annuities are specifically designed for consumers who want to save for their retirement. They are long-term solutions and may not allow withdrawals before the customer turns 55.