Tax-free savings accounts: an underused tool for growing wealth
No tax on growth, ever. Here’s how a tax-free savings account works, and the limits to watch.
Qina Advisory team
May 2026
A tax-free savings account (TFSA) lets you invest without paying tax on interest, dividends or capital gains. Over long periods, that tax saving adds up to a meaningful difference.
How the limits work
SARS sets an annual contribution limit and a lifetime limit per person. Contributions above these limits are taxed at 40%, so it’s important to track them, especially if you have more than one account.
Withdrawals don’t reset your limit
If you withdraw money, you can’t replace it without using up more of your limit. That’s why a TFSA works best as a long-term investment rather than an emergency fund.
Start one for your children
Children have their own limits. Starting early gives their savings decades to compound, completely tax-free.
See how your savings could grow with our tax-free savings calculator.
Want advice for your situation? A Qina adviser can walk you through your options, free of charge.
This article is general information and not financial advice. Product features, limits and legislation may change.