To promote an increase in household savings, the National Treasury has announced that they will introduce legislation that allows for the provision of Tax Free Savings Accounts from March 2015. The main aim of the introduction of this new product is to encourage South Africans to save more to provide for times of need as well as their medium to long term needs.

The key principles which the product must follow, as required by National Treasury, are:

• A simple product which is easy to understand.
• Clear disclosure on the costs involved from the inception of the product, including any intermediary fees.
• Each investor should ideally have a customized financial plan where the suitability of this account is based on the investor's circumstance.