Back to EasyEquities Submit a ticket
  1. Help Centre Home
  2. Knowledge Base
  3. Investing Accounts
  4. Tax Free Savings Account (TFSA)

Help Menu

Open navigation

What is a tax-free savings account (TFSA)?

As an EasyEquities client, you are automatically provided with a TFSA when you register with us.

TFSA stands for Tax Free Savings Account. A Tax Free Savings Account allows you to invest up to R500 000 without paying any tax on the profit you make on your investment, the dividends you receive, or the interest you might earn on cash.

There are a couple of restrictions though:

  • You can only invest up to R36 000 within a financial year (1 March – end Feb) in this account.
  • You can only invest in Collective Investment Schemes (ETFs fall under this category) and not single shares.

If you exceed the annual (R36 000) and lifetime (R500 000) limits, SARS will penalize you - 40% on the excess.

Luckily EasyEquities will prevent you from over contributing in the TFSA you hold with us, however, we can’t monitor TFSA contributions you make elsewhere. The tax exemption is based on individual capacity

Any amount that you withdraw from your account will count towards your annual and lifetime limit. If you have deposited R36 000 and withdraw R15 000 in the same year, you cannot deposit any more funds as you have already used your R36 000 deposit allocation.

Watch our video on TFSAs here.

How much does a TFSA cost?

Like any of your EasyEquities accounts, there is no minimum amount needed to start using your TFSA.

You can view a summary of all costs relating to a TFSA in our cost profile.

Did you find it helpful? Yes No

Send feedback
Sorry we couldn't be helpful. Help us improve this article with your feedback.

© EasyEquities. EasyEquities is a product of First World Trader (Pty) Ltd t/a EasyEquities which is an authorized Financial Services Provider (FSP number 22588). All trades on the EasyEquities platform are subject to the legal terms and conditions to which you agree to be bound. The EasyEquities platform enables users to invest in securities which includes whole shares and fractional share rights (FSRs). EasyEquities acts as an agent for the issue of whole shares, where the investor is the registered owner of those shares, entitled to dividends, participation in corporate actions and all the economic benefits and risks associated with share ownership.

In respect of FSRs, EasyEquities acts as principal to a contract for difference issued to the investor, where the investor will have a contractual claim against EasyEquities to the economic benefits and risks associated with share ownership (price movements and dividends) without having ownership rights in the underlying share. Fractional share rights (FSRs) which are issued through a contract for difference, are an over the counter derivative. Unlike whole shares, FSRs do not carry any voting rights. As the investor makes further investments in FSRs and ultimately ends up with a whole share, the contract for difference is closed out and ownership whole share is delivered to the investor.

The availability of any share on the EasyEquities platform is based on various factors but is not an indication of value and does not mean that any share is an appropriate investment for you.

The availability of any share on the browse shares page does not necessarily indicate any contractual relationship between EasyEquities and the listed company, or the payment of fees for services. Brand Logos are owned by the respective companies and not by EasyEquities. The use of a company’s brand logo does not represent an endorsement of EasyEquities by the company, nor an endorsement of the company by EasyEquities, nor does it necessarily imply any contractual relationship. Further investment disclosures are available on the EasyEquities website.

* Note exchange prices are delayed in accordance with regional exchange rules. South African prices are delayed by 15 minutes; North American prices are delayed by 15 minutes; Australian prices are delayed by 20 minutes.

EasyEquities is a subsidiary of Purple Group Limited, a company listed on the JSE Limited (PPE)