It is a flexible, general purpose savings vehicle, which allows individual investors to save up to R30 000 per annum (in aggregate during any year of assessment) on a tax free basis. The product serves as a highly tax-efficient way of supplementing an investor’s regular pre-retirement savings provision.
The Sygnia Tax Free Savings Account (TFSA) offers you significant tax benefits as all growth, including interest income, net rental income, dividend income and capital gains, is free of income, capital gains and dividend withholding tax. With the TFSA you are able to tailor your investment strategy to suit your specific risk profile. You have the ability to change your investment strategy at no cost and you are able to fully access your investments at any time. The TFSA also has no initial fees and taxes are not applicable at withdrawal – resulting in greater savings.
The TFSA is a suitable product for investors who require an alternative or a supplement to a standard retirement annuity, investors who have no pension or provident fund, or individuals who wish to supplement their existing pre-retirement savings.
You can invest into the Sygnia TFSA for a minimum debit order of R500 per month, making it an affordable addition to your investment portfolio. You can also invest an initial lumpsum amount of R10 000 and you may stop contributing at any time without penalty.