Tax Free Savings Account >>
Registered Retirement Savings Plan
Registered Retirement Income Funds
Registered Education Savings Plan
Tax Free Savings Account
Your Perfect Savings Partner
This is a government approved program that enables every Canadian who is a minimum of 18 years old to save taxes on investment income. While the account’s flexibility makes it particularly effective for meeting a variety of savings goals such as home purchase, renovations or travel, the TFSA can also complement the longer term savings goals of your RRSPs.
At the Police Credit Union, you can invest in one- to five-year term deposits or our new high-interest savings account.
BENEFITS AND FEATURES
- Generally, investments that are RRSP-eligible such as mutual funds*, term deposits, and savings accounts can be held in a TFSA
- Investment income earned in a TFSA is tax-free, regardless of whether it is interest, dividends or capital gains
- The current maximum contribution limit is $5,000 and limits in subsequent years will be indexed to inflation
- Unused contribution room can be carried forward indefinitely and there is no upper age limit
- Withdrawals from the plan are tax-free. Plus, withdrawals from the plan (principal and income) ‘add-back’ an equivalent amount in contribution room the following year
- TFSAs are a flexible savings tool, with members making ongoing contributions and withdrawals through their plans as desired over the years
- Upon death, TFSA assets can be transferred to a spouse without impacting the recipient’s contribution room
- Income generated under a TFSA and amounts withdrawn are not included in determining eligibility for income-tested benefits and credits
The Savings and Investment Calculator
* Mutual funds are offered through Credential Asset Management Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Unless otherwise stated, cash balances and mutual funds are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that issues deposits in Credit Unions. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. ®Credential is a registered mark owned by Credential Financial Inc. and is used under licence.