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Funding your TFSA

The first step in making an investment in your TFSA is to ensure that you have funded this account. View this article for the options available to fund your TFSA.

One of the benefits of using a Tax Free savings Account is the flexibility it offers. You are able to deposit and withdraw the funds in this account at any time, so long as you are aware of the annual contribution limits.

You are also given the option to leave your funds in the account, without going on to invest them. While you will earn a small amount of interest on these funds should you wish to leave them uninvested, the real benefits of a TFSA are only realised if you invest the money you transfer into it. This is where the power of compound interest plays out, giving your money the potential to grow exponentially more than what it would do, not invested.

To view the kind of impact this can have over time, view our TFSA compound interest calculator here.

To view a breakdown of the interest you could earn on cash left uninvested in this account, take a look at our cost profile.

What counts towards my yearly and lifetime contributions?

The amount that you deposit is what counts towards your annual contribution limit. You are able to keep track of how much you have deposited within the current financial year by logging in to your EasyEquities account and navigating to the deposits page. Here you will find a breakdown of your annual TFSA contribution.

Can I deposit more than R36k in my TFSA in order to cover fees while ensuring the full R36k is invested?

No, you cannot. R36k is the maximum amount allowed. If you deposit more than R36k by default the funds are allocated to your ZAR account.

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