Everything Counts | Episode 42: How do tax-free savings accounts (TFSAs) work in South Africa?
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Please note: The tax-free savings account limits discussed in Everything Counts episode 42 reflect the regulations in place at the time of recording. Following changes announced in the Budget Speech on 25 February 2026, the annual contribution limit has been increased from R36 000 to R46 000 per tax year, effective 1 March 2026. This article has been updated to reflect new limit.
In this episode of Everything Counts, host Motheo Khoaripe is joined by Investec financial adviser Vumi Dludlu and head of adviser enablement Johan Loubser to break down everything you need to know about tax-free savings accounts in South Africa.
They explain:
• What a tax-free savings account (TFSA) actually is
• The annual limit and R500 000 lifetime contribution cap
• What happens if you exceed the TFSA limit
• Why you can’t “catch up” on missed contributions
• The impact of withdrawals on your lifetime allowance
• How TFSAs compare to retirement annuities and regular savings accounts
• Whether opening a TFSA for your child makes sense
If you’re searching for answers about TFSA rules, contribution limits, tax penalties, or how to invest tax-free in South Africa, this episode will give you clear, practical insights to help you make smarter long-term decisions.
00:00 Introduction
01:30 Why tax-free savings accounts were first introduced
02:00 What are tax-free savings?
03:45 Tax-free savings vs regular savings
05:00 What savings products should you pair a tax-free savings account with?
07:00 How do tax-free savings accounts work?
09:00 Tax-free savings account rules South Africa
11:00 Should you upload a lump sum to your tax-free savings account?
12:00 Can you transfer your tax-free savings to another provider?
14:30 Are tax-free savings accounts good for your child’s future
17:20 Can you use tax-free savings as emergency funds?
19:00 How much can you put into a tax-free savings account?
20:00 Conclusion
In this episode of Everything Counts, host Motheo Khoaripe is joined by Investec financial adviser Vumi Dludlu and head of adviser enablement Johan Loubser to break down everything you need to know about tax-free savings accounts in South Africa.
They explain:
• What a tax-free savings account (TFSA) actually is
• The annual limit and R500 000 lifetime contribution cap
• What happens if you exceed the TFSA limit
• Why you can’t “catch up” on missed contributions
• The impact of withdrawals on your lifetime allowance
• How TFSAs compare to retirement annuities and regular savings accounts
• Whether opening a TFSA for your child makes sense
If you’re searching for answers about TFSA rules, contribution limits, tax penalties, or how to invest tax-free in South Africa, this episode will give you clear, practical insights to help you make smarter long-term decisions.
00:00 Introduction
01:30 Why tax-free savings accounts were first introduced
02:00 What are tax-free savings?
03:45 Tax-free savings vs regular savings
05:00 What savings products should you pair a tax-free savings account with?
07:00 How do tax-free savings accounts work?
09:00 Tax-free savings account rules South Africa
11:00 Should you upload a lump sum to your tax-free savings account?
12:00 Can you transfer your tax-free savings to another provider?
14:30 Are tax-free savings accounts good for your child’s future
17:20 Can you use tax-free savings as emergency funds?
19:00 How much can you put into a tax-free savings account?
20:00 Conclusion
