TFSA-Tax Free Savings Account

SPECIAL REWARDS RATE UNTIL MARCH 1, 2019

18- Months

Term Deposits

3.00%*

includes RRSP
or TFSA

42- Months

Term Deposits

3.25%*

includes RRSP
or TFSA

2019 TFSA contribution limit has gone up tp $6,000!
*some conditions apply

Rates are based on Rewards Membership.  Contact us for details.

Your Perfect Savings/Investment Partner

The Tax-Free Savings Account (TFSA) is a government approved program that enables every Canadian who is a minimum of 18 years of age to save taxes on their saving account or investment income. While the account’s flexibility makes it particularly effective for meeting a variety of savings goals such as home purchase, renovations and travel it can also be structured so you can invest in various vehicles, like a TFSA savings account, Term Deposits, mutual funds* and private portfolio solutions.

Speak to one of our FSO’s or Credential Asset Management Inc. Investment Specialist to review which savings or investment vehicle is best for you.  

BENEFITS AND FEATURES

  • The current maximum contribution limit is $6,000 for 2019.
  • The starting age for contributions is 18.
  • There’s no age limit to contributing to TFSAs; you can continue to invest even after the age of 71, the limit for RRSPs.
  • Investment income earned in a TFSA is tax-free, regardless of whether it is interest, dividends or capital gains.
  • You can withdraw money at any time for any reason without being taxed.
  • If you have not contributed in the past or did not meet maximum contributions in any given year, you can catch up on unused contributions. (see chart below)
  • TFSA withdrawals do not impact any government benefits or assistance programs such as child tax benefits, old age security or other guaranteed income supplements. This means low-income earners can generate tax-free income without it affecting their support.
  • Upon death, TFSA assets can be transferred to a spouse without impacting the recipient’s contribution room.

TIPS

  • You are not required to have earned income to contribute to a TFSA.
  • Withdrawals from the plan are tax-free.  However, you can’t re-contribute that amount in the same calendar year. (If you need funds for a short time and plan to replace them quickly, a good strategy is to make the withdrawal late in the calendar year, so you can re-contribute Jan. 1 of the following year.)
  • The best way to keep track of your unused contribution room is to check out your notice of assessment from the CRA.
  • If you don't contribute the maximum amount, you can carry forward your unused contribution room indefinitely. For example, if you contributed $2,500 to your TFSA in 2009, your contribution room for 2010 would be $7,500 ($2,500 carried forward from 2009 plus $5,000 for 2010). Use the chart to calculate your unused room.
Year TFSA Annual Limit TFSA Cumulative Limit
2009 $5,000 $5,000
2010 $5,000 $10,000
2011 $5,000 $15,000
2012 $5,000 $20,000
2013 $5,500 $25,500
2014 $5,500 $31,000
2015 $10,000 $41,000
2016 $5,500 $46,500
2017 $5,500 $52,000
2018 $5,500 $57,500
2019 $6,000 $63,500
TFSA yearly limit was set at $5,000 back in 2009 when the investment account was first created.

 
* Mutual funds are offered through Credential Asset Management Inc.

  

 

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TFSA Savings