Save smart in 2025: Get tax-free growth with Discovery Bank
March, 2025
A new tax year means a fresh start for your savings, and this year, you can save up to R36,000 in a Discovery Bank Tax-Free Savings Account. Open, top up, or transfer today and enjoy zero monthly fees, up to 7.25% interest, and the power of tax-free growth.
With the start of the new tax year, now is the perfect time to focus on smart saving. A Discovery Bank Tax-Free Savings Account (TFSA) allows you to grow your money tax-free, earn up to 7.25% interest, and pay zero monthly fees - all while making the most of your R36,000 annual contribution limit.
Whether you're saving for a major life goal, your child's future, or your retirement, a TFSA offers long-term benefits that compound over time. The key is to start as early as possible and let your money work for you.
Why save in a Discovery Bank TFSA?
- No tax, more growth: Earn tax-free interest - keeping more of your returns.
- Market-leading interest: Enjoy up to 7.25% interest to accelerate your savings.
- No monthly fees: Every rand you save works towards your future.
- Total flexibility: Start with just R1,000 and contribute at your own pace.
Who should consider a TFSA?
Young professionals, who have the most to gain by starting to save early
Take Lebo, for example: a 28-year-old marketing specialist, who has just started building her investment portfolio. She's heard about tax-free savings but always assumed she needed a lot of money to start. By contributing R3,000 a month to a TFSA, she can max out her annual R36,000 limit and earn interest on her savings without paying any tax. Over the years, her money grows exponentially through compounding, setting her up for a strong financial future - whether for retirement, a home deposit, or even early financial independence.
Parents saving for their children's future
Jaco and Lana just welcomed their first child, and they're already thinking about future school and university fees. By opening a TFSA in their child's name and contributing small amounts each month, they can ensure the money grows tax-free for years. By the time their child is ready for tertiary education, they'll have a significant amount saved without ever having to worry about taxes eating into their returns.
Those nearing retirement can give their savings a boost
At 55, John is thinking about retirement. He wants to supplement his pension but isn't keen on taking unnecessary investment risks. A TFSA offers him a tax-efficient way to grow his savings safely, with zero tax deductions on interest. Even if he starts contributing now, the tax-free growth will give him a valuable financial buffer when he retires.
Know the limits
You can contribute up to R36,000 per year, but if you don't use it, you lose it - there's no carry-over. And remember, the lifetime limit is R500,000. If you go over, you'll face a 40% penalty on the excess.
Get started today!
- Are you an existing client? Log in to your Discovery Bank app, go to 'Accounts' and open a new TFSA.
- Are you new to Discovery Bank? Download the app and open an account.
- Already have a TFSA elsewhere? Call us on 0800 07 96 97 to help you with a transfer to a Discovery Bank TFSA.
Start your tax-free savings journey today and watch your money grow!
The Future of Banking. Now.
This article is meant only as information and should not be taken as financial advice. For tailored advice, please contact your financial adviser.