5 reasons to get a TFSA

What if we told you there was a tax-free way to grow your savings without any withdrawal limitations? You’d be interested, right?

1. Start early

All you need to open a TFSA is to be 18 years of age with a valid Canadian social insurance number (SIN). That’s it.

2. Tax-free savings

Amounts deposited in a TFSA and the interest generated (from investment income, dividends or capital gains) are tax-free, even when withdrawing them.

3. Tons of options

Combine your TFSA with:

Investment accounts offering a diverse portfolio and interesting returns

High-Interest Savings Accounts offering excellent guaranteed returns

Guaranteed Investment Certificates (GIC) offering progressive interest rate bonuses

4. Make withdrawals anytime

Withdraw money when you need it. It’s never locked away.

Plus, your following year’s contribution limit will be increased by whatever amount you withdraw. This means that you won’t be penalized for redepositing all or part of the amount you withdrew. And remember, there are no limits on withdrawals.

However, you have a contribution ceiling. If you go over it, you’ll have to pay taxes on the excess amount as well as withdraw it from the account. Check out the TFSA annual contribution limits since its creation in 2009.

5. Your TFSA has no impact on your RRSP

The amount you deposit in your TFSA has no effect on your RRSP maximum contribution limit, because that limit is based on your income.

For more information and to help you reach your objectives, speak to a financial security advisor!