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Your FMU Insider | A R51,000 phone vs your R46,000 tax-free allowance
Apple's foldable lands on 23 October. One phone now costs more than a full year of tax-free saving. Here's what that gap is worth.
FinMeUp
October 05, 2026
A note from us to you
I saw the price of Apple's new foldable this week and had to sit with it for a minute. The iPhone Duo launches in South Africa on 23 October, and local tech media expect it to start above R51,000.
The number I keep coming back to: your tax-free savings account (TFSA) lets you contribute R46,000 per tax year. That limit rose from R36,000 on 1 March 2026, in this year's Budget.
So one phone now costs more than your entire annual TFSA allowance. What you buy is your call. I just want you to see the comparison first.
And remember: if you don't use this year's R46,000, it's gone. Unused allowance doesn't roll over.
What R51,000 does in a TFSA
Here's a different way to spend the same R51,000: a solid R5,000 phone, and the remaining R46,000 into your TFSA. That uses this year's allowance to the last rand.
Every rand of growth is tax-free, permanently. Interest, dividends and capital gains, for as long as the money stays invested.
It isn't locked away. Unlike a retirement annuity, you can withdraw if you need to. Just know that withdrawals don't give you your allowance back.
It compounds without further effort. Once it's in, it keeps growing in the background. No ongoing decisions required.
A phone is worth the most the day you buy it, and less every day after. Money in a TFSA tends to go the other way.
Illustrative only. TFSA assumes 10% a year growth, fees ignored, returns not guaranteed. Phone value assumes resale at roughly 60% after year one, 45% after year two and 35% after year three, a typical path for flagship phones. Foldables often lose value faster.
Phones that do the job for under R5,000
You don't need to downgrade to a brick. These all handle banking apps, WhatsApp, maps and decent photos.
Phone | Approx. price | Why it's worth a look |
|---|---|---|
Samsung Galaxy A26 5G | from R4,499 | 5G, water-resistant, and six years of software updates. The safest long-term pick. |
Samsung Galaxy A16 | from R4,199 | Same six-year update promise, no 5G. Reliable and familiar. |
Xiaomi Redmi Note 14 | from R3,999 | Most phone per rand: big AMOLED screen, strong camera, long battery. |
Poco M7 Pro 5G | from R3,799 | 5G with 8GB RAM and 256GB storage at a sharp price. |
iPhone 11 (certified pre-owned) | under R5,000 | Stay in the Apple ecosystem. Buy from a reputable refurbisher only. |
Prices are approximate SA retail as of mid-2026 and move often. Compare on PriceCheck before buying.
Where would R46,000 go right now? |
Last Thought
The best use of money isn't always the most exciting one. R51,000 buys a phone that's worth less the moment you leave the store. The same money fills this year's TFSA, where every rand of growth stays untaxed for as long as you leave it there.
That doesn't make the phone a bad decision. It's your money, your call. But the comparison is worth making.
If you're building wealth, put money where it keeps working, not only where it looks good on day one.
Ahead of the noise, always.
The FMU Insider Team
Note: This is not financial advice, merely observations. For personalised financial advice, you can book to speak to a financial advisor here (powered by a registered FSP: No. 51310).
Your money matters. Make it count.
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