Leaderboard

A TFSA is more for the long term and I think a lot of the older generations are too old to take advantage of this. Also because if your TFSA is with equities, it is a lot riskier and most people cannot take on such a risk. Furthermore, a TFSA is useless if you’re just going to be putting cash into it (if it’s a bank account with your bank)and trying to earn interest. This is because they normally offer low interest (5-6%) which could be outrun by inflation- meaning that you’re actually losing money. Also, you already get tax exemptions of up to R23 800 or so on interest per year anyways and I doubt the majority of people have enough cash to earn this much interest. In order to take full advantage of a TFSA, you should have one with a unit trust provider or stock broker. Your gains and Dividends will then be tax free and this could lead to extremely large savings. (Feel free to correct me if I’m wrong) So I’d say be happy that your bank don’t provide one because this allows you to open up a TFSA with a different broker.

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