Don't miss out on the benefits of tax-free savings

There's still time to start benefitting from tax-free savings this financial year. Open a new tax-free savings account or top up your existing account by 29 February 2024.

The major benefit of tax-free savings accounts is that you can save without paying any tax on interest, dividends or capital gains tax. Plus, with compound interest, the amount you've saved can increase without you making any additional payments. The larger the amount and the longer the savings term, the more substantial your savings become.

To fully benefit from compound interest, avoid withdrawing your savings. You can't top up or replace any funds you withdraw because it already counted towards your annual and lifetime contribution limits.

Save for your long-term goals with a tax-free savings account

You can save up to R36,000 each tax year and up to R500,000 in your lifetime. Remember to make the most of your annual and lifetime limit. If you don't save the full R36,000 for the current tax year, the unused portion will not roll over to the next year, starting on 1 March 2024.

The annual limit may change every year, so keep an eye on the SARS website for updates. It's important to remember that SARS will penalise you if you exceed these annual limits, which apply across all your tax-free savings and investments and not for each account.

There's still time to get a free tax-free savings account with Discovery Bank

With a Discovery Bank Tax-Free Savings Account, you'll pay zero monthly fees and grow your savings at up to 8% interest.

You can open one in just a few taps in the Discovery Bank app. You'll see all your savings in one place and can manage your accounts easily in a simple, user-friendly interface.

Already have tax-free investments but missing out on our market-leading interest rates and our award-winning banking app? Call us on 0800 07 96 97 by 19 February 2024 to transfer your tax-free savings to Discovery Bank today. Learn more about saving with Discovery Bank.

The Future of Banking. Now.

This article is meant only as information and is not financial advice. For tailored advice, please contact your financial adviser.