Tax Free Savings Accounts
Starting in 2009, the government of Canada introduced a great new way for you to save money.
A registered Tax-Free Savings Account allows Canadians 18 years of age and older to save up to $5,500 each year. This amount can include all kinds of investments including term deposits, guaranteed investment certificates, mutual funds**, publicly traded securities, as well as government and corporate bonds. However, unlike an RRSP, contributions to a TFSA are not tax deductible.
Interest and investment income earned in a TFSA—including capital gains—are not taxed on withdrawal, and there are no restrictions on how the money is spent. Funds can be withdrawn at any time without penalty and any amount you withdraw can be put back into the tax-free account the following year without reducing your contribution limit.
Even better, neither the income earned in a tax-free account nor withdrawals from it affect eligibility for income-related benefits and tax credits such as the Guaranteed Income Supplement (GIS).
TFSA High Interest Savings Account
First Credit Union is now offering a TFSA High Interest Savings Account! Take advantage of this great savings product which allows you to earn from a competitively high interest rate, tax free, while also allowing you the flexibility of withdrawing your funds anytime (without any extra monthly fees or complicated strings attached!)
Make your resolution stick, and get started saving with a Tax Free Savings Account! To learn more, contact us by phone or email, or ask one of our in-branch Financial Service Representatives today.