I’m on a Journey of becoming financially free and have joined Ann Wilson’s Financial Freedom University (FFU). She is known as The Wealth Chef.
After listening to and reading through the script of Module 1 Key Learnings, I started becoming more aware of the investment products out there.
One of my actively earned income flows is to assess portfolios of evidence for the National Certificate Business Analysis (NCBA) in South Africa. Students submit workplace assignments and additional evidence, in the form of a portfolio, to be assessed against a set of assessment criteria.
While assessing one of these portfolios, I noticed some interesting information about Tax Free Savings (TFS) accounts. I already knew that in South Africa a person may save up to R30k per year with a total of R500k over ones lifetime.
What I didn’t know is that from 1 March 2018, account holder may transfer funds from financial institution to another financial institution, but currently they may not. The National Treasury initially stipulated that during the 1st year of introducing TFS, no transfers to and from these accounts would be allowed, to ensure smooth introduction of TFS.
TFS accounts must be accessible within 32 business days from the time that the money is requested by the client and at some banks you are able to access your funds within 24 hours.
And the whopper realisation was that when the account holder makes monthly contributions towards their TFS account and then does a withdrawal midway through the year, the subsequent deposits are added to the total contributions to date and the withdrawal is not subtracted from the total contributions.
Now, I don’t know how accurate this information is, so I’m inviting you to comment below and share your insights.