How to maximise your TFSA this month

A TAX-Free Savings Account (TFSA) is a powerful long-term wealth-creation tool.

- DUMA MXENGE

SOUTH Africans get one last window before February 28 to squeeze value out of their Sars-approved tax-free and tax-efficient investments. | FILE

With a TFSA, there is no tax on your savings or investment returns, no matter how much your investment has grown. This means that you can receive dividends, your account can receive interest, or you can sell a portion of the funds in your account at a capital gain, without having to pay any tax.

But TFSAs come with rules, which make this time of year especially important. The last few days before the end of the tax year are the last chance to get the full tax-free value - and to make some last-minute corrections to common mistakes.

Here are four things every South African investor should do before midnight on February 28 to get the most out of their TFSA.

1. Maximise your annual contribution