CAPE TOWN: National Budget indicating an impact on long-term savings positive or negative a National Treasury regulation that kicked in on 1 March 2018 provides South Africans with added flexibility when it comes to Tax-free Savings Accounts (TFSAs).
This is according to René Grobler, head of cash investments at Investec Bank, who said that as of 1 March 2018, South Africans will be able to switch part of or their entire TFSA’s from one financial service provider to another at no cost
To maximise the tax benefits and returns of a TFSA at a bank, investors are encouraged to keep their funds invested for as long as possible to benefit from compound interest over the investment period, Grobler said
“With tax-free investments, investors are allowed to invest up to R33,000 per year with a lifetime limit of R500,000, taking advantage of the medium- to long-term benefits of compounding, without paying any tax on interest, dividends or capital gains tax (CGT).
