Franc Tax-Free Savings Account

Franc's Tax-Free Savings Account (TFSA) is a long-term investing product that lets you grow your money without paying any tax on interest earned, dividends received, or capital gains when you withdraw.

Why use a TFSA?

The TFSA is ideal for long-term goals where you want your investment returns to go further by avoiding tax and leveraging time. Ideally you should be investing money into this product that you don't need to rely on for a long time, if ever. It works well for:

  • Investing for a child's future
  • Long-term investment for education or retirement
  • Building wealth over time without needing advanced investment knowledge

How it works

  • You can invest up to R36,000 per year, with a lifetime limit of R500,000 (set by SARS).
  • If you go over these limits, you'll be taxed on the extra amount. In the Franc app, you'll be able to see how close you are to your limits.
  • All growth – interest, dividends, and capital gains – is completely tax-free.
  • Your TFSA investment is placed in the Satrix Global Balanced Fund of Funds ETF, a diversified, multi-asset global fund. This fund is designed to balance growth and stability across different regions and asset classes.

Key features

  • No lock-in, but it's designed for long-term use (5+ years, ideally as long as possible)
  • Invest from R125
  • Tax-free growth helps you get more from your investment over time
  • You can only have one TFSA through Franc

Contribution and access

  • You can invest any amount over R125, as long as you stay within your annual and lifetime limits
  • Withdrawals are allowed at any time, but withdrawn amounts still count toward your lifetime limit — they don't reset
  • You can track your TFSA's value, contributions, and growth through the Franc app

Who it's for

  • Long-term investors wanting to maximise growth without paying tax
  • Parents or guardians investing for their children's future
  • Anyone looking to take advantage of their annual tax-free allowance without needing multiple platforms or products

The Franc TFSA is straightforward, low-cost, and designed to make smart investing accessible – even if you're just getting started. If you have a sufficient emergency fund set up, it is a good idea to start investing in a TFSA.

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Franc - Tax-Free Savings Account